FX.co ★ EUR/NZD analysis for February 17, 2016

Overview:

Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.6841 in a high volume. In the daily time frame, I found a demand bar in a volume below the average. In the 4-hour time frame, we can observe strong rejection from our resistance cluster (1.7025). 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 1.6720 , Fibonacci expansion 100% at 1.6525, and Fibonacci expansion 161.8% at 1.6210. Watch for potential selling opportunities on rallies. The position of moving averages is flat, but great weakness is observed in the background and the intraday resistance cluster suggests that we may see further downward movements.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.7020

R2: 1.7095

R3: 1.7210

Support levels:

S1: 1.6790

S2: 1.6715

S3: 1.6600

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