FX.co ★ EUR/NZD analysis for April 09, 2014

Overview:

Since our previous analysis, the EUR/NZD pair has been trading downwards, as we expected, the price tested the level of 1.5831 on the average volume . According to the daily chart, we can observe supply bar on the volume just below the average, which is a sign that we may see possible smaller bullish correction before further bearish continuation. The price rejected from our Fibonacci expansion 161.8% level at the price of 1.6160 and tested the price of 1.5856 on higher volume. As we already wrote in previous analysis, major down station is at the price of 1.5765. According to the 1H timeframe we can observe up-thrust bar (supply overcoming demand) on the Fibonacci retracement 61.8%. Buying looks risky, so watch for selling opportunities after retracement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.5955

R2: 1.5983  

R3: 1.6028

Support levels:

S1: 1.5866  

S2 : 1.5838

S3: 1.5794

Trading recommendation: Be careful with buying the EUR/NZD and watch for selling opportunities after retracement.