FX.co ★ EUR/NZD: Analysis for August 01, 2013

Overview:

Since our last analysis, the EUR/NZD pair has been trading upwards movement, as we expected, price tested level 1.6732 on high volume. I placed Fibonacci expansion to find levels where down corrective phase may finish and I got FE 100% at price 1.6357 and FE 161.8% at price 1.6030. The current situation on (4H) time frame is that we got demand bar and we may expect starting of up movement (trend continuation). On the daily chart we can see demand bar on the volume above the average and rejection from previous up swing (blue shape), which is a sign that we may see up continuation and testing of level 1.7100. I calculated volume in previous down leg and previous up leg and I got increasing on up leg of about 36% which is sign that we changed bearish momentum into bullish momentum (4H chart). Since we are in an uptrend, according to the daily chart, I advise you to watch for buying opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6709

R2: 1.6744

R3: 1.6802

Support levels:

S1: 1.6594

S2: 1.6559

S3: 1.6502

Trading recommendation: Be careful with selling and look for buying opportunities I recommend 1.7100 for short-term up target.