Overview:
Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.5999. We can observe low volatily due to bank holidays.In the daily time frame, I found a weak supply bar and a strong head-and-shoulders confirmed formation (a broken neckline). According to the 30M time frame, I found 2 climatic actions in background and a strong up-thrust bar in an ultra high volume (sign of weakness).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: 1.6122
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 the head-and-shoulders formation. Watch for potential selling opportunities.
