Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.5965 in an average volume. In the daily time frame, I found a supply bar. In the H4 time frame, I found a strong head-and-shoulders formation confirmed (a broken neckline). Price also broke again our 200 SMA. Be careful when buying EUR/NZD at this stage since lower prices are expected. I have placed Fibonacci expansion to find potential support levels. I got Fibonacci expansion 61.8% at the level of 1.6070 (broken), Fibonacci expansion 100% is at the level of 1.5840 and Fibonacci expansion 161.8% is seen at the level of 1.5470.
Fibonacci Pivot Points:
Resistance levels:
R1: 1.6165
R2: 1.6190
R3: 1.6230
Support levels:
S1: 1.6085
S2: 1.6060
S3: 1.6020
Trading recommendations : Buying EUR/NZD looks very risky at this stage since the price confirmed a head-and-shoulders formation. Watch for potential selling opportunities.
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.5965 in an average volume. In the daily time frame, I found a supply bar. In the H4 time frame, I found a strong head-and-shoulders formation confirmed (a broken neckline). Price also broke again our 200 SMA. Be careful when buying EUR/NZD at this stage since lower prices are expected. I have placed Fibonacci expansion to find potential support levels. I got Fibonacci expansion 61.8% at the level of 1.6070 (broken), Fibonacci expansion 100% is at the level of 1.5840 and Fibonacci expansion 161.8% is seen at the level of 1.5470.
Fibonacci Pivot Points:
Resistance levels:
R1: 1.6165
R2: 1.6190
R3: 1.6230
Support levels:
S1: 1.6085
S2: 1.6060
S3: 1.6020
Trading recommendations : Buying EUR/NZD looks very risky at this stage since the price confirmed a head-and-shoulders formation. Watch for potential selling opportunities.
The material has been provided by InstaForex Company – www.instaforex.com
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