Overview:
Since our previous analysis, the EUR/NZD pair has been trading downwards, as we expected, the price tested the level of 1.6088 on volume above the average. We can observe that our Fibonacci expansion level of 100% at the price of 1.6244 held successfully and that caused price to go downwards. According to the daily chart, we can observe that supply came into the market and buyers around the level of 1,6260 got exhausted. As we already wrote in the previous analysis, EUR/NZD is in short- and mid-term bearish trend, so watch for selling opportunities after retracement. According to the 4H timeframe chart, we can observe that EUR/NZD found the ground around the price of 1.6105 and we got strong reaction from the buyers on the very high volume (buying climax). I have placed Fibonacci retracement levels to find potential end of bullish corrective phase and i got Fibonacci retracement 38.2% at the price of 1.6161 (on the test) and Fibonacci retracement 61.8% at the price of 1.6207.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1.6250
R2: 1.6284
R3: 1.6340
Support levels:
S1: 1.6138
S2 : 1.6104
S3: 1.6048
Trading recommendation: Be careful with buying the EUR/NZD and watch for selling opportunities after retracement.