FX.co ★ EUR/NZD analysis for February 18, 2016

Overview:

Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.6700 in a high volume. In the daily time frame, I found a supply 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. Our Fibonacci expansion 61.8% at 1.6720 is on the test. If the price breaks the level of 1.6720, we may expect potential testing of Fibonacci expansion 100% at 1.6525, and Fibonacci expansion 161.8% at 1.6210. Watch for potential selling opportunities on rallies. Moving averages are headed downwards and great weakness is observed in the background. The intraday resistance cluster suggests that we may see further downward movements.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6950

R2: 1.7025

R3: 1.7135

Support levels:

S1: 1.6735

S2: 1.6670

S3: 1.6560

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.