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EUR/NZD analysis for February 22, 2016

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Overview :

Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.6549 in a high volume. In the daily time frame, I found a weak demand bar, which made the price head downwards. In the 4-hour time frame, we can observe a strong rejection from our resistance cluster (1.7025). Therefore, be careful when buying EUR/NZD at this stage and watch for potential selling opportunities. The level of 1.6700 may be a good level for selling. I found strong support around the price of 1.6520-1.6450 (Fibonacci expansions 100% and swing low). Moving averages are heading downward. A breakout of the level 1.6450 may confirm potential testing of 1.6180 (Fibonacci expansion 161.8%).

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6865

R2: 1.6910

R3: 1.6980

Support levels:

S1: 1.6720

S2: 1.6670

S3: 1.6600

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