FX.co ★ EUR/NZD analysis for March 09, 2016

Overview:

Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.6141 in a high volume. In the daily time frame, we can observe a supply bar in an average volume. 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 target). We can observe that 10SMA successfully held in the daily time frame. There are a few technical reasons for this strong downward pressure: 1. a 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. In the H4 time frame, I found weak demand at the level of 1.6335. I am still expecting a downward price movement. Watch for potential selling opportunities on rallies. Fibonacci Pivot Points:

Resistance levels:

R1: 1.6360

R2: 1.6400

R3: 1.6475

Support levels:

S1: 1.6220

S2: 1.6175

S3: 1.6105

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