Overview
Since our previous analysis, the EUR/NZD pair has been trading upwards, the price tested the level of 1.6016 on volume below the average according to the 4H timeframe. As you can see in the graph our Fibonacci retracement 61.8% at the price of 1.6010 got tested and we saw rejection from that point just like we expected. Also there is a major Fibonacci retracement 61.8% at the price of 1.6075. According to the 4H timeframe, we may observe that supply overcoming demand on higher volume, which is a sign that buying looks risky. 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. Support level is around the price of 1.5910 (previous swing high).
Daily pivot Fibonacci points:
Resistance levels:
R1: 1.5994
R2: 1.6022
R3: 1.6066
Support levels:
S1: 1.5905
S2 : 1.5877
S3: 1.5832
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 21, 2014 . Thanks for your support on EUR/NZD analysis for May 21, 2014
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