FX.co ★ EUR/NZD analysis for July 07, 2014

Overview:

Since our previous analysis, the EUR/NZD pair has been trading downwards. As we expected, the price tested the level of 1.5528 on volume above the average, according to the 4H timeframe. According to the previous price action, we can observe strong supply on ultra high volume, according to the 4H timeframe, which is a sign that buying looks risky. I have placed Fibonacci expansion levels to find potential down stations and I got first down station around the price of 1.5510 (Fibonacci expansion 61.8%). Be careful with buying and watch for potential selling opportunities. Third down station (short-term) is still at the price of 1.5335 (Fibonacci expansion 161.8%). According to the 1H timeframe, we can observe weak demand on average volume.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.5571

R2: 1.5583

R3: 1.5601

Support levels:

S1: 1.5535

S2: 1.5523

S3: 1.5505

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