FX.co ★ EUR/NZD analysis for December 22, 2014

Overview:

In our last analysis, EUR/NZD was trading upward.The price tested the level of 1.5856 in a volume above the average. According to the daily time frame, we can observe a lack of supply, which is a sign that selling EUR/NZD at this stage looks risky. I have placed Fibonacci retracement to find potential resistance levels and I got Fibonacci retracement 38.2% at the price of 1.5900 and Fibonacci retracement 61.8% at the price of 1.6000. According to the 4H time frame, we can observe lack of supply around the price of 1.5750. My advice is to watch for potenatial selling opportunities after retracement.

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.5820

R2: 1.5840

R3: 1.5873

Support levels:

S1: 1.5754

S2: 1.5734

S3: 1.5701

Trading recommendations: Be careful when selling the EUR/NZD pair since we have a lack of supply around the level of 1.5750.