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EUR/NZD analysis for May 05, 2016

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Recently, EUR/NZD has been moving downwards. The price tested the level of 1.6524 in a high volume. According to the 5M time frame, I found strong selling pressure and weak demand on the market. Watch for selling opportunities on the rallies. The take profit level is set at the price of 1.6420 (Fibonacci retracement 61.8%). According to the 4H time frame, I found supply in a very high volume. Price broke 21 SMA according to the 4H time frame, which is also a sign that EUR/NZD changed trend dynamic from bullish to bearish.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6735

R2: 1.6775

R3: 1.6840

Support levels:

S1: 1.6600

S2: 1.6560

S3: 1.6495

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