Overview
Since our previous analysis, the EUR/NZD pair has been trading upwards, the price tested the level of 1.5986 on high volume according to the 4H timeframe. The price has broken resistance at the level of 1.5910 and we may expect testing the level of 1.6010 (submajor Fibonacci retracement 61.8%). Also there is a major Fibonacci retracement 61.8% at the price of 1.6075. Anyway, buying still looks risky since we are in the short-term downtrend. Be careful with short-term buying since EUR/NZD is in short-term downtrend and watch for selling opportunities after retracement. Any larger bearish reaction from our resistance levels may be a good sign for potential bearish continuation. To confirm futrher larger bearish movement, as like we already wrote, price needs to break the level of 1.5745 (major swing low) on higher volume.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1.5900
R2: 1.5917
R3: 1.5944
Support levels:
S1: 1.5846
S2 : 1.5829
S3: 1.5802
Trading recommendation: Be careful with buying the EUR/NZD and watch for selling opportunities after retracement.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via EUR/NZD analysis for May 20, 2014 . Thanks for your support on EUR/NZD analysis for May 20, 2014
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