FX.co ★ EUR/NZD : analysis for December 01, 2014

Overview:

In our last analysis, EUR/NZD has been trading downwards. As we expected, the price tested and rejecected from the level of 1.5987 in a high volume. According to the 2H time frame, we can oberve weak buying climax in the background and later on a successful absorption volume. I have placed Fibonacci expansion from most recent swings to find potential support levels. I got Fibonacci expansion 100% at the price of 1.5780 and Fibonacci expansion 161.8% at the price of 1.5715 According to the daily time frame, we got up-thrust bar (supply overcoming demand). Be careful when buying and watch for potential selling opportunities.

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.5907

R2: 1.5930

R3: 1.5969

Support levels:

S1: 1.5829

S2: 1.5806

S3: 1.5767

Trading recommendations: Be careful when buying EUR/NZD since we got absorption volume in the background. Watch for potential selling opportunities.