FX.co ★ EUR/NZD analysis for December 18, 2014

Overview:

In our last analysis, EUR/NZD was trading downward. As we expected, the price tested the level of 1.5862 in a volume above the average. I placed Fibonacci expansion to find potential resistance level. Our Fibonacci expansion 61.8% at the price of 1.6160 was held successfully, and it made price start with an downward movement. According to the 4H time frame, we can observe supply in a volume above the average. I plaved Fibonacci expansion to find potential support levels and got Fibonacci expansion 61.8% at the price of 1.5940 (already broken), Fibonacci expansion 100% at the price of 1.5800 and Fibonacci expansion 161.8% at the price of 1.5590.

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.6125

R2: 1.6172

R3: 1.6248

Support levels:

S1: 1.5973

S2: 1.5926

S3: 1.5850

Trading recommendations: Be careful when buying the EUR/NZD pair since we have a strong supply on the market