Overview:
EUR-NZD successfully tested upper diagonals of two channels at price 1.6050. If you take a look at a volume around area 1.6050 you can see that we got lack of demand. I calculated the total volume of previous two up legs and I got that first up leg got 12,000 of total volume and that second up leg got 8,500 of total volume which is decreasing of 29%. I also marked climatic bar (large volume up bar), where I wanted to show you decrease in volume on up swings which are good sign that we may see down. We also tested the level at price 1.5950 (previous supply) as we expected and now we are waiting for a break of that level to confirm down view. If we break the level of 1.5950, we may see testing of level 1.5840 (previous swing low).
Daily pivot Fibonacci points:
Resistance levels:
R1 : 1.6039
R2 : 1.6082
R3 : 1.6153
Support levels:
S1 : 1.5898
S2 : 1.5855
S3 : 1.5785
Trading recommendation: Be careful with short-term buying and look for selling opportunities if the price breaks level 1.5950. My recommendation for down target is 1.5840.
