Overview:
In our last analysis, EUR/NZD has been trading upwards. As we expected, the price tested the level of 1.6234 in an ultra high volume (buying climax). We can observe that price went into bearish corrective phase according to the previous strong bullish leg so I have placed Fibonacci retracement to find potential end of bearish corrective phase. I got Fibonacci retracement 61.8% at the price of 1.6095 (held successful). According to the 4H time frame, we can observe potential end of a beairhs corrective phase (abcd), which is a sign that selling looks risky. Be careful when selling EUR/NZD since we may see further upward movement. Watch for potential buying opportunities after retracement (buy on the lows). According to the daily chart, we got weak supply in a volume below the average.
Daily Fibonacci pivot levels:
Resistance levels:
R1: 1.6250
R2: 1.6312
R3: 1.6412
Support levels:
S1: 1.6050
S2: 1.5988
S3: 1.5888
Trading recommendations: Be careful when selling the EUR/NZD pair since our Fibonacci retracement 61.8% is on the test
The material has been provided by InstaForex Company - www.instaforex.com
