Since our last analysis, the EUR/NZD pair has been trading downwards, as we expected, the price tested the level of 1.6363 (FE 161.8 %) on volume above the average. As you can see from the chart, according to the 1H chart, there is a selling climax, which is first sign of bullish continuiation.Since our FE 161.8 % held successfully, selling EUR/NZD looks very risky. Anyway, to confirm bullish continuation and end of bearish corrective phase, we need good volume background and strong demand on the market. Be careful with selling EUR/NZD since we may see bullish continuation.First upper station may be the area of previous swing lows at price 1.6550. In case that price continues with downward movement, we may see testing of FR 61.8 % at price 1.6325, before bullish continuation.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1.6623
R2: 1.6703
R3: 1.6832
Support levels:
S1: 1.6365
S2: 1.6285
S3: 1.6156
Trading recommendation: Be careful with selling the EUR/NZD pair and watch for buying opportunities after bearish correction.
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
Since our last analysis, the EUR/NZD pair has been trading downwards, as we expected, the price tested the level of 1.6363 (FE 161.8 %) on volume above the average. As you can see from the chart, according to the 1H chart, there is a selling climax, which is first sign of bullish continuiation.Since our FE 161.8 % held successfully, selling EUR/NZD looks very risky. Anyway, to confirm bullish continuation and end of bearish corrective phase, we need good volume background and strong demand on the market. Be careful with selling EUR/NZD since we may see bullish continuation.First upper station may be the area of previous swing lows at price 1.6550. In case that price continues with downward movement, we may see testing of FR 61.8 % at price 1.6325, before bullish continuation.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1.6623
R2: 1.6703
R3: 1.6832
Support levels:
S1: 1.6365
S2: 1.6285
S3: 1.6156
Trading recommendation: Be careful with selling the EUR/NZD pair and watch for buying opportunities after bearish correction.
The material has been provided by InstaForex Company – www.instaforex.com
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