FX.co ★ EUR/NZD analysis for May 02, 2014

Overview

Since our previous analysis, the EUR/NZD pair has been trading downwards, as we expected, the price tested the level of 1.6009 on volume below the average according to the daily chart.. According to the daily chart, we can observe that supply overcoming demand just like we expected. 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 supply on average volume and testing of previous swing low area (1.6000). If the price breaks the level of 1.6000 on higher volume, we may see testing the level of 1.5960 (Fibonacci retracement 61.8%).

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6109

R2: 1.6128

R3: 1.6159

Support levels:

S1: 1.6047  

S2 : 1.6028

S3: 1.5997

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