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05.01.2016 12:50 PM
EUR/NZD analysis for January 05, 2016

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Overview:

Recently, EUR/NZD has been moving downwards. As I expected, the price tested the level of 1.6011 in an average volume. In the daily time frame, I found a supply bar and confirmed formation of a strong head-and-shoulders pattern (a broken neckline). Besides, i found a very weak yesterday bar close (bar with close near middle of the range). In the H4 time frame, the price rejected strongly our 200 SMA (1.6180) and created a bearish outside bar from 200 SMA. I placed Fibonacci retracement to find a potential end of the upward correction and got Fibonacci retracement 38.2% at the price of 1.6080 (successfully held) and Fibonacci retracement 61.8% at the price of 1.6120. According to the daily time frame, I found testing of the 200 SMA. I expect further downward movement and retesting of 1.5850 and even a potential breakout to the downside.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6160

R2: 1.6235

R3: 1.6355

Support levels:

S1: 1.5915

S2: 1.5840

S3: 1.5720

Trading recommendations : Buying EUR/NZD looks very risky at this stage since the price rejected strongly our 200 SMA in the H4 and daily time frames. Watch for potential selling opportunities.

Summary
Urgency
Analytic
Petar Jacimovic
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