Overview:
Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.6054 in an average volume. In the daily time frame, I found a neutral bar. In the H4 time frame, I found a strong head-and-shoulders formation confirmed (a broken neckline). Be careful when buying EUR/NZD at this stage since lower prices are expected. I have placed Fibonacci expansion to find potential support levels. I got Fibonacci expansion 61.8% at the level of 1.6070, Fibonacci expansion 100% is at the level of 1.5840 and Fibonacci expansion 161.8% is seen at the level of 1.5470. The breakout of 1.6015 will confirm further downside.
Fibonacci Pivot Points:
Resistance levels:
R1: 1.6200
R2: 1.6240
R3: 1.6300
Support levels:
S1: 1.6080
S2: 1.6040
S3: 1.5980
Trading recommendations : Buying EUR/NZD looks very risky at this stage since the price confirmed a head-and-shoulders formation. Watch for potential selling opportunities.
