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

Overview:

Since our previous analysis, the EUR/NZD pair has been trading sideways. We are facing a quiet day and flat EUR/NZD around the price of 1.5460. According to the previous price movement, we can observe strong supply in an ultra high volume, according to the 1H timeframe, which is a sign that buying looks risky. I have placed Fibonacci expansion levels to find the second down station. I got the second down station around the level of 1.5420 (Fibonacci expansion 100%). Be careful when buying and watch for potential selling opportunities. The third major down station (short-term) is still at the price of 1.5335 (Fibonacci expansion 161.8%). According to the 4H timeframe, we can observe supply in a volume above average, which is a good sign for potential bearish continuation.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.5546

R2: 1.5577

R3: 1.5627

Support levels:

S1: 1.5447

S2: 1.5416

S3: 1.5367

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