Overview:
Recently, EUR/NZD has been moving sideways around the price of 1.6070. We can observe low volatily due to bank holidays.In the daily time frame, I found a weak supply bar. In the H4 time frame, I found a strong head-and-shoulders confirmed formation (a broken neckline). The price again broke the 200 SMA. 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 (broken), Fibonacci expansion 100% is at the level of 1.5840, and Fibonacci expansion 161.8% is seen at the level of 1.5470.
Fibonacci Pivot Points:
Resistance levels:
R1: 1.6120
R2: 1.6155
R3: 1.6210
Support levels:
S1: 1.6010
S2: 1.5980
S3: 1.5925
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.
