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

Overview:

Since our previous analysis, the EUR/NZD pair has been trading downwards, as we expected, the price tested the level of 1.5978 on ultra high volume 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. Our Fibonacci retracement 61.8% at the price of 1.6122 held successfully and that caused price to go down. We saw strong rejection from our Fibonacci level and buying at this stage looks very risky. First support level is at 1.5865 (previous swing low). According to the 4H timeframe, we can observe rejection and strong supply in the background, which is good sign for the bearish continuation. Be careful with buying and watch for selling opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6132

R2: 1.6175

R3: 1.6244

Support levels:

S1: 1.5994

S2 : 1.5951

S3: 1.5882

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