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

Overview:

Since our last analysis, EUR/NZD has been trading sideways. We are facing a quiet day and low activity on the market around the price of 1.5550. According to the daily timeframe, we can observe weak demand in average volume, which is a sign that buying EUR/NZD at this stage looks risky. Be careful when buying and watch for potential selling opportunities. The third major short-term downstation is still at the price of 1.5335 (Fibonacci expansion 161.8%). I have placed Fibonacci expansion to find potential support levels and I got Fibonacci expansion 61.8% at the price of 1.5460.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.5568

R2: 1.5578

R3: 1.5593

Support levels:

S1: 1.5537

S2: 1.5527

S3: 1.5511

Trading recommendations: Be careful when buying the EUR/NZD pair and watch for selling opportunities after retracement.