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EUR/NZD analysis for May 20, 2016

analytics573ef2b90fcbd.png

Recently, EUR/NZD has been moving downwards. As I expected, the pair tested the level of 1.6531 in a high volume. According to the 4H time frame, I found a downward channel. The price broke the upward diagonal and I am expecting a downward continuation. Our Fibonacci expansion 100% at the price of 1.6530 held successfully. Anyway, the trend is downward and buying looks risky. If the price breaks the level of 1.6530 in a high volume, we may see potential testing of 1.6380.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6655

R2: 1.6675

R3: 1.6710

Support levels:

S1: 1.6585

S2: 1.6560

S3: 1.6530

Trading recommendation for today: Watch for selling opportunities on rallies.

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