Overview:
Recently, EUR/NZD has been moving upwards .The price tested the level of 1.6215 in an average volume. In the daily time frame, I found weak demand and a neutral bar. In the H4 time frame, I found strong head and shoulders formation confirmed (broken neckline). Be careful when buying EUR/NZD at this stage since lower prices are expected. I had placed Fibonacci expansion to find potential support levels. I got Fibonacci expansion 61.8% at the level of 1.6070, Fibonacci expansion 100% at the level of 1.5840 and Fibonacci expansion 161.8% at the level of 1.5470.
Fibonacci Pivot Points:
Resistance levels:
R1: 1.6200
R2: 1.6240
R3: 1.6315
Support levels:
S1: 1.6055
S2: 1.6010
S3: 1.5940
Trading recommendations : Buying EUR/NZD looks very risky at this stage since the price confirmed head and shoulders formation. Watch for potential selling opportunities.
