FX.co ★ EUR/NZD analysis for December 19, 2014

Overview:

In our last analysis, EUR/NZD was trading downward. As we expected, the price tested the level of 1.5744 in a volume below the average. I placed Fibonacci expansion to find potential resistance level. Our Fibonacci expansion 61.8% at the price of 1.6160 was held successfully, and it made price start with an downward movement. I placed Fibonacci expansion to find potential support levels and got Fibonacci expansion 100% at the price of 1.5800 (already broken) and Fibonacci expansion 161.8% at the price of 1.5590. We also got support level around the price of 1.5670 (swing low like support). Be careful when buying EUR/NZD since we may see a lower price.

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.5990

R2: 1.6047

R3: 1.6139

Support levels:

S1: 1.5806

S2: 1.5749

S3: 1.5657

Trading recommendations: Be careful when buying the EUR/NZD pair since we have a strong supply in the background.