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

Overview:

In our last analysis, EUR/NZD has been trading downwards. As we expected, the price tested the level of 1.6015 in a high volume. I have placed Fibonacci expansion from most recent swings to find support levels. I got Fibonacci expanson 61.8% at the price of 1.6070 (held successfully). If the price breaks the level of 1.6000, we may see the testing of the level of 1.5900. Be careful when buying and watch for potential selling opportunities after retracement. According to the daily timeframe, we can observe supply in a high volume.

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.6157

R2: 1.6196

R3: 1.6261

Support levels:

S1: 1.6027

S2: 1.5988

S3: 1.5923

Trading recommendations: Be careful when buying the EUR/NZD pair since we may see short-term bearish continuation.