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EUR/NZD analysis for February 19, 2016

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Overview :

Recently, EUR/NZD has been moving sideways around the level of 1.6760. In the daily time frame, I found a supply bar in a volume below the average. In the 4-hour time frame, we can observe strong rejection from our resistance cluster (1.7025). Therefore, be careful when buying EUR/NZD at this stage and watch for potential selling opportunities. Our Fibonacci expansion 61.8% at 1.6720 is on the test. If the price breaks the level of 1.6720, we may expect potential testing of Fibonacci expansion 100% at 1.6525, and Fibonacci expansion 161.8% at 1.6210. Watch for potential selling opportunities on rallies. Moving averages are headed sideways. According to M30 time frame, I found a trading range between the level of 1.6700 (support) and the level of 1.6835 (resistance). Watch for potential breakout of trading range to confirm further direction.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6780

R2: 1.6800

R3: 1.6845

Support levels:

S1: 1.6700

S2: 1.6675

S3: 1.6635

Trading recommendation: A spike in an ultra-high volume (potential buying climax) is seen in the background. Be careful when buying EUR/NZD and watch for potential selling opportunities.

The material has been provided by InstaForex Company - www.instaforex.com