FX.co ★ EUR/NZD analysis for October 31, 2014

Overview:

In our last analysis, EUR/NZD has been trading downwards. The price tested the level of 1.5955 in a very high volume. We can observe that the price has broken our Fibonacci retracement 61.8% at the price of 1.6095, which pushed the price to continue with downward pressure. According to the 4H time frame, we can observe a bullish corrective phase, so I have placed Fibonacci retracement to find potential resistance levels. I got Fibonacci retracement 38.2% at the price of 1.6070 and Fibonacci retracement 61.8% at the price of 1.6140. We also got absorption volume in the background, which makes EUR/NZD very risky for mid-term buying.

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.6194

R2: 1.6236

R3: 1.6305

Support levels:

S1: 1.6056

S2: 1.6014

S3: 1.5945

Trading recommendations: Be careful when buying EUR/NZD pair since our Fibonacci retracement 61.8% got broken