Overview:
Recently, EUR/NZD has been moving sideways around the price of 1.6200. In the daily time frame, we can observe a supply bar in an average volume, which is a sign of weakness. In the daily time frame, I placed Fibonacci expansion levels to find a potential downward station. I got Fibonacci expansion 161.8% at the price of 1.5990 (downward target). There are a few technical reasons for this strong downward pressure: 1. Massive up thrust in an ultra-high volume bar in the background (supply overcame demand); 2. Another up thrust bar from the same zone; 3. Confirmed double-top formation. According to M30 time frame, I found a selling climax in the background, which attracted some buyers on the market. Anyway, I am still expecting downward price. Watch for potential selling opportunities on rallies. I found a solid selling zone around the price of 1.6270.
Fibonacci Pivot Points:
Resistance levels:
R1: 1.6260
R2: 1.6300
R3: 1.6370
Support levels:
S1: 1.6115
S2: 1.6070
S3: 1.6000
Trading recommendation for today: Watch for potential selling opportunities on rallies.
The material has been provided by InstaForex Company - www.instaforex.com