FX.co ★ EUR/NZD analysis for May 06, 2014

Overview

Since our previous analysis, the EUR/NZD pair has been trading downwards, as we expected, the price tested the level of 1.5880 on volume below the average according to the daily chart. 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 1H timeframe chart, we can observe supply on volume above the averege, which is a sign that we may see more downward moves. Since the price has broken our support level of 1.5960, we may see testing the level of 1.5830-1.5765 (previous swing lows). Watch for selling opportunities after retracement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6029

R2: 1.6046

R3: 1.6074

Support levels:

S1: 1.5974

S2 : 1.5957

S3: 1.5930

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