FX.co ★ EUR/NZD: analysis for July 02, 2013

Overview:

Since our last analysis the EUR/NZD pair has been trading upward moving as we expected. We rejected from level 1.6630 (our FE 161.8 %). Current situation on (4H) time frame is that we got increasing volume on previous up move which is a sign that we have demand on the market. On the daily chart we can also observe weak supply and no supply bar (Monday bar) on volume just below average which is a sign that down corrective move was weak. Since we are in uptrend and got increasing volume on previous up move according the daily chart, buying after every down correction looks 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 price breaks FE 161.8 % (1.6630), we may see larger corrective down phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6817

R2: 1.6861

R3: 1.6932

Support levels:

S1: 1.6675

S2: 1.6631

S3: 1.6560

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.