FX.co ★ EUR/NZD analysis for February 20, 2015

Overview:

In our last analysis EUR/NZD was trading upwards. As we expected, the price has tested the level of 1.4965 in a high volume. According to the M30, we can observe a high-effort bar with very low results. The resistance level at the price of 1.5200 has been held successfully, thus causing price to start with downward movement. I have placed Fibonacci retracement to find resistance levels and I got Fibonacci retracement 38.2% at the price of 1.5160. Anyway, if the price breaks the level of 1.4965 in a high volume, we may see a possible testing of the level of 1.4865 (Fibonacci expansion 100%). My advice is to watch for potential buying opportunities on the lows.

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.5185

R2: 1.5215

R3: 1.5265

Support levels:

S1: 1.5085

S2: 1.5055

S3: 1.5005

Trading recommendations: Be careful when selling at this stage and watch for potential buying opportunities after retracement (buy on the dips)