FX.co ★ EUR/NZD analysis for May 05, 2014

Overview

Since our previous analysis, the EUR/NZD pair has been trading downwards, as we expected, the price tested the level of 1.5985 on volume above the average according to the daily chart. According to the daily chart, we can observe suppply on volume above the average, which is a good sign for furhter bearish movement. 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 volume below the average and the testing of the 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%). We must say that the volume is not so big today, so we are waiting for larger volume and price action.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6070

R2: 1.6093

R3: 1.6131

Support levels:

S1: 1.5994

S2 : 1.5971

S3: 1.5933

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