Overview:
Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6583 in a ultra-high volume (buying climax). In the daily time frame, we can observe demand with a very wide bar spread (professional selling). In the daily time frame, I placed Fibonacci expansion levels to find a potential downward station. I got Fibonacci expansion 161.8% at the level of 1.5990 (downward target). We can observe that 21SMA successfully held in the daily time frame. There are a few technical reasons behind this great downward pressure: 1. a massive upthrust in a ultra-high volume bar in the background (supply overcame demand); 2. another upthrust bar from the same zone; 3. confirmed double-top formation. In the H4 time frame, I found a massive volume spike (buying climax) in a ultra-high volume ( a strong sign of weakness). Watch for potential selling opportunities on rallies.
Fibonacci Pivot Points:
Resistance levels:
R1: 1.6575
R2: 1.6675
R3: 1.6835
Support levels:
S1: 1.6250
S2: 1.6150
S3: 1.5990
Trading recommendation for today: watch for potential selling opportunities on rallies.
The material has been provided by InstaForex Company - www.instaforex.com