our last analysis, EUR/NZD has been trading downwards. As we
expected, the price rejected from the level of 1.6035 and tested the
level of 1.5641. According to the daily time frame, we can observe
supply in an ultra high volume (selling climax), which is a sign that
selling EUR/NZD at this stage looks very risky and that we may see
a potential absorption phase. According to the 4H time frame, we can
oberve a bullish corrective phase. I have placed Fibonacci retracement
to find potential resistance levels and I got Fibonacci retracement
38.2% at the price of 1.5790 and Fibonacci retracement 61.8% at the
price of 1.5885. If the price breaks breaks the level of 1.5820, we
will have an absorption volume. Anyway, if we don’t see an absorption volume. If we see larger reaction from sellers and bearish continuation,
our next down station will be around the price of 1.5515.
Fibonacci pivot levels:
recommendations: Be careful when selling EUR/NZD since we got strong
selling climax in the background.
The material has been provided by InstaForex Company – www.instaforex.com