FX.co ★ EUR/NZD: analysis for December 10, 2015

Overview:

Recently, EUR/NZD has been moving upwards and then strongly downwards due to RBNZ cut rate by 25 bps. As I had expected, the price tested the level of 1.6744 (my profit target) in a high volume. Anyway, the price went down in an ultra high volume (selling climax) trading around the level of 1.6180 looks very risky. I have had placed Fibonacci retracement to find potential support. I got Fibonacci retracement 61.8% at the level of 1.6165. We may see potential re-testing of 1.6730 in the next period. Selling looks very risky.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.6585

R2: 1.6670

R3: 1.6805

Support levels:

S1: 1.6315

S2: 1.6230

S3: 1.6100

Trading recommendations : Selling EUR/NZD at this stage looks very risky since the price is testing the major support cluster. Watch for potential buying opportunities on dips.