EUR/NZD analysis for November 04, 2014

Overview:

In
our last analysis, EUR/NZD has been trading upwards. The price tested
the level of 1.6198 in an average volume. EUR/NZD is in a bullish
corrective phase, so I have placed Fibonacci expansion to find
potential resistance. I got Fibonacci expansion 100% at the price of
1.6190 (held successful) and Fibonacci expansion 161.8% at the price
of 1.6290. According to the 4H time frame, we can observe lack of
demand around our Fibonacci expansion (1.6190), which is a sign that
buying EUR/NZD at this stage looks risky. We also got an absorption
volume in the background, which makes EUR/NZD very risky for mid-term
buying. Anyway, if the price breaks the level of 1.6190 in a high
volume and strong price action, we may see testing the level of
1.6255 (swing high like resistance)

Daily
Fibonacci pivot levels:

Resistance
levels:

R1:
1.6202

R2:
1.6243

R3:
1.6310

Support
levels:

S1:
1.6068

S2:
1.6027

S3:
1.5960

Trading
recommendations: Be careful when buying EUR/NZD pair since our
Fibonacci expansion 100% held successful

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