FX.co ★ EUR/NZD analysis for April 22, 2014

Overview:

Since our previous analysis, the EUR/NZD pair has been trading downwards, as we expected, the price tested the level of 1.6040, we are still waiting larger movement on this pair. According to the 1H timeframe, we can observe buying climax bar (ultra high volume bar) on resistance zone at the price of 1.6080. Just after climatic bar there is doji bar on also high volume, which is sign that we may expect bearish movement on this pair. As we already wrote in the previous analysis, EUR/NZD is in short- and mid-term bearish trend, so watch for selling opportunities after retracement. I placed Fibonacci expansion levels and I have got Fibonacci expansion 61.8% at the price of 1.6090 (currently on the test) and Fibonacci expansion 100% at the price of 1.6245. Buying looks risky, so watch for selling opportunities after retracement. Any larger supply on a higher volume may confirm further bearish movement. Also, there is resistance at the price of 1.6175 (previous swing high).

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6125

R2: 1.6143

R3: 1.6172

Support levels:

S1: 1.6068

S2 : 1.6050

S3: 1.6022

Trading recommendation: Be careful with buying the EUR/NZD and watch for selling opportunities after retracement.