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EUR/NZD analysis for May 03, 2016

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Recently, EUR/NZD has been moving upwards. As I expected, the price tested the level of 1.6587 in a high volume. My upward targets at the price of 1.6425 and 1.6590 were met. According to the 15M time frame, I found weakness, which is a sign that buying EUR/NZD at this stage looks risky. I expected a downward correction at least on this pair. I have placed the Fibonacci expansion to find potential downward targets. I got the Fibonacci expansion of 61.8% at the price of 1.6535, the Fibonacci expansion of 100% at the price of 1.6515, and the Fibonacci expansion of 161.8% at the price of 1.6485. Watch for selling opportunities on the rallies. Anyway, if the price breaks the level of 1.6590 in a high volume, we may see potential testing of 1.6700.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6455

R2: 1.6485

R3: 1.6530

Support levels:

S1: 1.6360

S2: 1.6330

S3: 1.6285

Trading recommendation for today: Be careful when buying EUR/NZD and watch for selling opportunities on the rallies.

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