FX.co ★ EUR/NZD : analysis for February 16, 2016

Overview:

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6975 in a high volume. In the daily time frame, I found weakness and supply overcoming demand in the background. In the 1-hour time frame, I found the strong intraday resistance at 1.6960. Therefore, be careful when buying EUR/NZD at this stage and watch for potential selling opportunities. I placed Fibonacci expansion to find potential support level (take profit levels). I got Fibonacci expansion 61.8% at 1.6750 (successfully held), Fibonacci expansion 100% at 1.6460, and Fibonacci expansion 161.8% at 1.5985. Watch for potential selling opportunities on rallies. The position of moving average is flat but high weakness is oberved in background and intraday resistance cluster suggests that we may see further downward movement.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6935

R2: 1.7000

R3: 1.7110

Support levels:

S1: 1.6715

S2: 1.6650

S3: 1.6540

Trading recommendation: A spike in an ultra-high volume (potential buying climax) is seen in the market. Be careful when buying EUR/NZD and watch for potential selling opportunities.