FX.co ★ EUR/NZD: Analysis for June 03, 2013

Overview:

Since our last analysis the EUR/NZD pair tested and rejected from level 1.6365, and also tested double upper diagonals, we may expect future down movement. On the daily chart we got two climatic bars (ultra high volume bar) which is strong sign that EUR/NZD is in overbought zone, so we may expect future down and starting of larger corrective phase on EUR/NZD. On the (4H) chart I calculated previous up legs and i got that first up leg has 22 000 of total volume and second leg has 12 800 of total volume which is decreasing of about 41 %. Selling EUR/NZD around area 1.6270 looks very attractive and my advice is to look for selling opportunities with potential down targets at price 1.6200 and 1.6050. Levels 1.6200 and 1.6050 are previous supply levels and we may expect testing of these levels.

Daily pivot Fibonacci points:

Resistance levels:

R1 : 1.6365

R2 : 1.6428

R3 : 1.6528

Support levels:

S1 : 1.6165

S2 : 1.6102

S3 : 1.6002

Trading recommendation: Be careful with short-term buying and look for selling opportunities. I recommend 1.6200 and 1.6050 for down targets.