FX.co ★ EUR/NZD analysis for November 06, 2014

Overview:

In our last analysis, EUR/NZD has been trading downwards. As we expected, the price tested and rejected from the level of 1.6268 in a high volume. Our Fibonacci expansion 100% at the price of 1.6250 held successfully, which is a sign that buying looks risky. According to the 1H time frame, we can observe absorption volume in the background, which is a sign that buying EUR/NZD looks risky. I have placed Fibonacci retracment to find potential support levels and I got Fibonacci retracement 61.8% at the price of 1.6075 (currently on the test). If the price breaks the level of 1.6075 in a high volume and strong price action takes place, we may see possible testing the level of 1.6005 (swing low like support).

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.6204

R2: 1.6254

R3: 1.6335

Support levels:

S1: 1.6041

S2: 1.5991

S3: 1.5909

Trading recommendations: Be careful when buyingEUR/NZD pair since we got successful rejection from our Fibonacci expansion 100%