EUR/NZD analysis for July 04, 2013

Overview:

Since our last analysis the EUR/NZD pair has been trading sideways moving around price 1.6700. Thus, we are still waiting to see larger move on this pair. Current situation on (4H) time frame is that there is an increasing volume on previous up move, which is a sign there is demand on the market. On a daily chart we can also observe weak supply bar on volume just above the average which is a sign that down corrective move is weak. Since we are in an uptrend and got increasing volume on previous up move according to the daily chart, buying after every down correction looks quite attractive. In our case, buying from price 1.6630 (FE 161.8 %). We may expect testing of previous up swings at price 1.7100 and also Fibonacci expansion 61.8 % at price 1.7500. Anyway, if the price breaks FE 161.8 % (1.6630) and previous down swing 1.6573, we may see larger corrective down phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6795

R2: 1.6829

R3: 1.6885

Support levels:

S1: 1.6684

S2: 1.6650

S3: 1.6595

Trading recommendation: Be careful with selling and look for buying opportunities after down corrections. I recommend 1.7100 and 1.7500 for short-term up target.