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EUR/NZD analysis for May 04, 2016

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Recently, EUR/NZD has been moving upwards. Te price tested the level of 1.6693 in a high volume. According to the 1H time frame, I found weakness near the price of 1.6690. I found an up-thrust bar (supply overcame demand) and a potential double top formation. According to the 15M time frame, I found few signs of weakness on the top. I found an up-thrust bar in a high volume (few bars closed in the middle in a high volume), which is a sign that buying EUR/NZD at this stage looks risky. Be careful when buying and watch for potential selling opportunities. The first downward take profit level is set at the price of 1.6630 and the second take profit level is set at the price of 1.6570.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6675

R2: 1.6750

R3: 1.6875

Support levels:

S1: 1.6425

S2: 1.6345

S3: 1.6210

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