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04.11.2014 03:29 PM
EUR/NZD analysis for November 04, 2014

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Overview:

In our last analysis, EUR/NZD has been trading upwards. The price tested the level of 1.6198 in an average volume. EUR/NZD is in a bullish corrective phase, so I have placed Fibonacci expansion to find potential resistance. I got Fibonacci expansion 100% at the price of 1.6190 (held successful) and Fibonacci expansion 161.8% at the price of 1.6290. According to the 4H time frame, we can observe lack of demand around our Fibonacci expansion (1.6190), which is a sign that buying EUR/NZD at this stage looks risky. We also got an absorption volume in the background, which makes EUR/NZD very risky for mid-term buying. Anyway, if the price breaks the level of 1.6190 in a high volume and strong price action, we may see testing the level of 1.6255 (swing high like resistance)

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.6202

R2: 1.6243

R3: 1.6310

Support levels:

S1: 1.6068

S2: 1.6027

S3: 1.5960

Trading recommendations: Be careful when buying EUR/NZD pair since our Fibonacci expansion 100% held successful

Summary
Urgency
Analytic
Petar Jacimovic
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