FX.co ★ EUR/NZD analysis for June 11, 2014

Overview:

Since our previous analysis, the EUR/NZD pair has been trading downwards, as we expected, the price tested the level of 1.5779 on volume above the average. According to the 4H timeframe, we can observe strong supply on volume above the average, which is a good sign for potential bearish movement. Buying at this stage still looks very risky since we have got supply on high volume. Our first down station at the price of 1.5870 has been met and broken so we may expect testing the level of 1.5745 (swing low). If the price breaks the level of 1.5745 on higher volume, we may see testing the level of 1.5665 (Fibonacci expansion 100%).

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.5971

R2: 1.6000

R3: 1.6048

Support levels:

S1: 1.5876

S2: 1.5847

S3: 1.5800

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