FX.co ★ EUR/NZD analysis for May 16, 2014

Overview:

Since our previous analysis, the EUR/NZD pair has been trading upwards, as we expected, the price tested the level of 1.5904 on ultra high volume (buying climax) accoroding to the daily chart. We can observe strong resistance level around the price of 1.5910 (previous swing low, Fibonacci retracement 38.2%), which is a sign that we may see bearish continuation from that point. According to the 4H timeframe, there is an indecision candle and buying climatic bar in the  background, which is sign that buying looks very risky. If the price breaks the level of 1.5740 on higher volume, we may see testing the level of 1.5625 (Major Fibonacci expansion 100%). Be careful with short-term buying since EUR/NZD is in short-term downtrend and watch for selling opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.5899

R2: 1.5936

R3: 1.5996

Support levels:

S1: 1.5779

S2 : 1.5742

S3: 1.5682

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