FX.co ★ EUR/NZD : analysis for May 29, 2015

Overview:

Recently, EUR/NZD has been trading upwards. As we expected, the price tested the level of 1.5411 in a high volume. The short-term trend is bullish. According to the daily time frame, we can observe demand in a high volume with a strong price action. According to the H1 time frame, the price had tested the level of 1.5400 and we saw a weak price action, which is a sign of potential bearish correction. Buying looks risky since we are in the bullish trend and we got strong bullish activity in the background. Anyway, watch for potential buying opportunities after the bearish correction (buy on dips). Major resistance is at 1.5400. So, watch for buying opportunities above the level of 1.5400. If the price breaks the level of 1.5400 in a high volume, the resistance levels will be set at 1.5460 and 1.5800.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.5280

R2: 1.5350

R3: 1.5460

Support levels:

S1: 1.5060

S2: 1.4990

S3: 1.4880

Trading recommendations: Be careful when selling EUR/NZD at this stage since we can observe strong a bullish activity (volume) in the background and broken supply trendline.