Overview:
Recently, EUR/NZD has been moving sideways around the price of 1.6460. I am waiting for larger activity and stronger price action. The short-term trend is still neutral. Be careful when selling EUR/NZD before a breakout of the key support level takes place. In the the daily time frame, we can see an upward bar in an average volume. A high-volume breakout at the level of 1.6590 will confirm further upward movements. I placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 38.2% at the level of 1.6860, Fibonacci retracement 50% at the level of 1.7080 and Fibonacci retracement 61.8% at the level of 1.7295. According to the M30, I found absorption of selling climax in the background and today highest volume was supportive, which is a sign that we may see upward movements. So, be careful when selling at this stage because we may see potential recovery in the euro. Anyway, strong support at 1.6150 may become strong resistance once it gets broken.
Fibonacci Pivot Points :
Resistance levels:
R1: 1.6545
R2: 1.6595
R3: 1.6680
Support levels:
S1: 1.6380
S2: 1.6330
S3: 1.6250
Trading recommendations: Selling looks risky at this stage so watch for potential buying opportunities on an intraday basis. Selling opportunities are preferable only if the price breaks the level of 1.6150.
