FX.co ★ EUR/NZD analysis for March 03, 2016

Overview :

Recently, EUR/NZD has been moving downwards. The price tested the level of 1.62154 in a high volume. In the daily time frame, we can observe a supply bar in a high volume, which is a sign of weakness. In the daily time frame, I placed Fibonacci expansion levels to find a potential downward station. I got Fibonacci expansion 161.8% at the price of 1.5990 (downward traget). There are few technical reasons for this strong downward pressure.

1. Massive upthrust in an ultra-high volume bar in the background (supply overcame demand)

2. Another upthrust bar from the same zone

3. Confirmed double-top formation

Watch for potential selling opportunities on rallies. I found a solid selling zone around the price of 1.6315-1.6370.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6420

R2: 1.6470

R3: 1.6545

Support levels:

S1: 1.6260

S2: 1.6215

S3: 1.6135

Trading recommendation for today: Watch for potential selling opportunities on rallies.