FX.co ★ EUR/NZD analysis for July 08, 2014

Overview:

Since our previous analysis, the EUR/NZD pair has been trading downwards. As we expected, the price tested the level of 1.5433 in a volume above average, according to the 4H timeframe. According to the previous price movement, we can observe strong supply on ultra high volume, according to the 1H timeframe, which is a sign that buying looks risky. I have placed Fibonacci expansion levels to find second down station and I got second down station around the price of 1.5420 (Fibonacci expansion 100%). 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%).

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.5570

R2: 1.5587

R3: 1.5615

Support levels:

S1: 1.5513

S2: 1.5496

S3: 1.5467

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