Overview:
Since our previous analysis, the EUR/NZD pair has been trading sideways, around the price of 1.6140, we are still waiting for larger movement. Our previous analysis is still valid. According to the daily chart, we can observe demand on average volume, which is a sign that we may see further bullish movements. The EUR/NZD is in short- and mid-term bullish trend, so watch for buying opportunities on the dips and try to catch the bullish phase. Our Fibonacci expansion level FE 100% at the price of 1.6225 held successfully and that is the reason why we saw rejection. If the price breaks the level of 1.6230 on higher volume, we may see possible testing of the level at 1.6135 (FE 161.8%). According to intraframe (m15), we can observe no selling pressure and selling climax bar which are signs that selling at this stage looks risky. To confrim another potential bullish phase, we need to see strong demand on high volume on the market. Anyway, if the price breaks the level of 1.6085 on high volume, we may see testing of the level 1.6020 (Fibonacci expansion 100%) before any larger upward movement.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1.6225
R2: 1.6253
R3: 1.6299
Support levels:
S1: 1.6133
S2 : 1.6105
S3: 1.6059
Trading recommendation: Be careful with selling the EUR/NZD pair since we have the selling climax and weak supply, according, to the daily chart.