Overview:
Since our previous analysis, the EUR/NZD pair has been trading downwards, as we expected, the price tested the level of 1.5762 on volume above the average. According to the daily chart, we can observe supply on volume above the average (selling climax), which is a sign that we may see more downward movement before the larger buying reaction. We may see possible testing of the level of 1.5630 (major Fibonacci expansion 100%). Be careful with short-term buying at this stage since the price broke our support zone. Watch for selling opportunities after retracement. There is always a chance for smaller bullish correction, but the global direction is bearish. According to the H4 timeframe, we got supply on average volume.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1.5989
R2: 1.6040
R3: 1.6123
Support levels:
S1: 1.5823
S2 : 1.5772
S3: 1.5689
Trading recommendation: Be careful with buying the EUR/NZD and watch for selling opportunities after retracement.
