FX.co ★ EUR/NZD: Analysis for June 27, 2013

Overview:

Since our last analysis the EUR/NZD pair has been trading downward moving like we expected. We tested level 1.6630 (our FE 161.8 %). I placed Fibonacci expansion levels to find potential end of down correction, where we are currently. I got FE 161.8% at price 1.6630 which is level we are testing currently. Current situation on (4H) time frame is that we got decreasing volume on previous down move which is a sign, that supply is weak. On the daily chart we can also observe weak supply bar on volume just below average which is a sign that this down move is weak. Since we are in uptrend and since we got increasing volume on previous up move according the daily chart, buying after every down correction looks attractive. In our case buying around price 1.6630 (FE 161.8 %).

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6881

R2: 1.6967

R3: 1.7106

Support levels:

S1: 1.6603

S2: 1.6517

S3: 1.6378

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