EUR-NZD (short-term)

Overview:

EUR-NZD is testing upper diagonals of two channels I created at price 1.6050.If you take a look volume around area 1.6050 you can see that we got lack of demand.I calculated total volume of previous two up legs and I got that first up leg got 12,000 of total volume and that second up leg got 8,500 of total volume which is decreasing of 29%.I also marked climatic bar (large volume up bar), where I wanted to show you decrease in volume on up swings which are good sign that we may see down. Anyway, to confirm my view, we must break previous supply level at price 1.5950, till then my market overview is neutral but with larger risk for buyers. If we break the level of 1.5950, we may see testing of level 1.5840 (previous swing low).

Daily Pivot Fibonacci points :

Resistance levels :

R1 : 1.6001

R2 : 1.6049

R3 : 1.6125

Support levels:

S1 : 1.5849

S2 : 1.5801

S3 : 1.5725

Trading recommendation: Be careful with short-term buying and look for selling opportunities if price breaks level 1.5950. My recommendation for down target is 1.5840. 

The material has been provided by InstaForex Company – www.instaforex.com