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EUR/NZD analysis for July 18, 2016

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Recently, EUR/NZD has been moving upwards. The price tested the level of 1.5635 in an ultra high volume due to weaker CPI report in New Zealand. According to the 30M time frame, I found strong reaction from buyers. Anyway, the price managed to do a downward correction and price tested the level of 1.5510 (Fibonacci retracement 61.8%). Selling at this stage looks risky. I have placed the Fibonacci expansion to find potential upward targets. I got the Fibonacci expansion 61.8% at the price of 1.5625, Fibonacci expansion 100% at the price of 1.5695, and Fibonacci expansion 161.8% at the price of 1.5810. Watch for buying opportunities on the dips. Anyway, if the price breaks the level of 1.5510, we may see lower price.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5555

R2: 1.5586

R3: 1.5640

Support levels:

S1: 1.5440

S2: 1.5405

S3: 1.5350

Trading recommendations for today: Be careful when selling and watch for buying opportunities.

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