Overview:
Since our previous analysis, the EUR/NZD pair has been trading downwards, as we expected, the price tested and rejected from the level of 1.6177 (Fibonacci extension 161.8%). According to the daily chart, we can observe supply overcoming demand (up-thrust bar) on very high volume, which is a sign that buying at this stage looks very risky and that we may see further bearish continuation on this pair. The price rejected from our Fibonacci expansion 161.8% level at the price of 1.5810 and tested Fibonacci retracement 38.2% at the price of 1.6018. If the price breaks the level of 1.6018 on higher volume, we may see testing the level of 1.5920 (Fibonacci retracement 61.8%). Watch for selling opportunities after retracement.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1.6145
R2: 1.6178
R3: 1.6231
Support levels:
S1: 1.6039
S2 : 1.6006
S3: 1.5953
Trading recommendation: Be careful with buying the EUR/NZD and watch for selling opportunities after retracement.
