Overview:
Since our previous analysis, the EUR/NZD pair has been trading upwards, the price tested the level of 1.6138 on the volume below the average. According to the daily chart (Thursday), we can observe demand bar on the volume below the average, which is a sign that buying at this stage looks risky. According to the 1H timeframe, we can observe weak demand and indecision bar on very high volume, which is another sign that buying at this stage looks risky. As we already wrote in the previous analysis, EUR/NZD is in short- and mid-term bearish trend, so watch for selling opportunities after retracement. I placed Fibonacci expansion levels and I have got Fibonacci expansion 61.8% at the price of 1.6090 (currently on the test) and Fibonacci expansion 100% at the price of 1.6245. Buying looks risky, so watch for selling opportunities after retracement. Any larger supply on a higher volume may confirm further bearish movement. Also, there is resistance at the price of 1.6175 (previous swing high).
Daily pivot Fibonacci points:
Resistance levels:
R1: 1.6132
R2: 1.6166
R3: 1.6220
Support levels:
S1: 1.6022
S2 : 1.5988
S3: 1.5933
Trading recommendation: Be careful with buying the EUR/NZD and watch for selling opportunities after retracement.
