FX.co ★ EUR/NZD: Analysis for June 18, 2013

Overview:

Since our last analysis the EUR/NZD pair has been trading upwards, price tested the level of 1.6821. I placed Fibonacci Retracement levels and I got FR 61,8% at price 1.6831. According to my trading rules if FR 61.8% at price 1.6831 holds, we can expect future down and finishing of major down correction (A,B,C,D marked on chart). Since price has broken Fibonacci Extension 61.8% at price 1.6560, that means that we have started a major corrective phase and that 1.6342 level is possible. Current situation on (1H) time frame is that we are testing level 1.6819. On the daily chart we can also see no supply bar which is another confirmation for future downward. Anyway, if price breaks swing C level at price 1.6915, buyers will remain strength. Since we are in major down corrective phase I advise you to watch for selling opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6744

R2: 1.6811

R3: 1.6919

Support levels:

S1: 1.6528

S2: 1.6461

S3: 1.6353

Trading recommendation: Be careful with short-term buying and look for selling opportunities. I recommend 1.6342 for down target.