FX.co ★ EUR/NZD analysis for August 27, 2014

Overview:

Since our last analysis, EUR/NZD has been trading downwards. As we expected the price has tested the level of 1.5710 (Fibonacci retracement 61.8%) in a volume just above average according to the 4H time frame, which is a sign that buying looks very risky. It is still unsafe to buy anything, so watch for potential selling opportunities after retracement. If the price breaks the level of 1.5710 in a higher volume, we may see potential testing the level of 1.5595. According to the 1H time frame, we can observe strong selling pressure (selling climax) in the background, which is a sign that buying looks risky.

Daily Fibonacci pivot levels :

Resistance levels:

R1: 1.5846

R2: 1.5862

R3: 1.5887

Support levels:

S1: 1.5795

S2: 1.5779

S3: 1.5753

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