Overview:
Since our last analysis the EUR/NZD pair has been trading in downward moves like we expected, the price tested 1.5866 and almost reached our first target level at 1.5840. If you take a look at a volume around area 1.6050 you can see that we got lack of demand. I calculated the total volume of previous two up legs and I got that first up leg got 12,000 of total volume and that the second up leg got 8,500 of total volume which is decreasing of 29%. I also marked climatic bar (large volume up bar), where I wanted to show you decrease in volume on up swings which are good sign that we may see down. I did calculation for previous up swing and I saw decreasing of 54% which is strong sign for lack of demand. I placed Fibonacci expansion levels and I got FE 161.8 % at price 1.5851 and FE 261.8 % at price 1.5740. In case that price breaks 1.5840 (our first target) my next target will be 1.5740. Buying of this pair looks very risky, so I advise you to watch for selling opportunities.
Daily pivot Fibonacci points:
Resistance levels:
R1 : 1.5979
R2 : 1.6009
R3 : 1.6058
Support levels:
S1 : 1.5882
S2 : 1.5852
S3 : 1.5804
Trading recommendation: Be careful with short-term buying and look for selling opportunities. I recommend 1.5840 and 1.5740 as down targets.
The material has been provided by InstaForex Company - www.instaforex.com
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