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Overview:

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.6840in a ultra-high volume (buying climax). In the daily time frame, we can observe demand with a very wide bar spread (professional selling). In the daily time frame, I placed Fibonacci expansion levels to find a potential downward station. I got Fibonacci expansion 161.8% at the level of 1.5990 (downward target). There are a few technical reasons behind this great downward pressure: 1. a massive upthrust in an ultra-high volume bar in the background (supply overcame demand); 2. another upthrust bar from the same zone; 3. confirmed double-top formation. In the M30 time frame, we can observe changes in a trend behavior that shifted from bullish to bearish. Watch for potential selling opportunities on rallies.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6845

R2: 1.6990

R3: 1.7225

Support levels:

S1: 1.6380

S2: 1.6235

S3: 1.6000

Trading recommendation for today: watch for potential selling opportunities on rallies.

The material has been provided by InstaForex Company – www.instaforex.com

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