FX.co ★ EUR/NZD analysis for April 23, 2014

Overview:

Since our previous analysis, the EUR/NZD pair has been trading upwards, the price tested the level of 1.6148 on average volume. We are still waiting for a larger movement on this pair. According to the 1H time frame, we can observe that strong demand at the price of 1.6010 on ultra high volume has entered the market and that caused price to start upward movement. 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 have placed Fibonacci expansion levels and i got FE 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 doji swing high).

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6091

R2: 1.6111

R3: 1.6144

Support levels:

S1: 1.6025

S2 : 1.6005

S3: 1.5972

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