FX.co ★ EUR/NZD: analysis for August 27, 2013

Overview:

Since our last analysis, the EUR/NZD pair has been trading upwards, as we expected, the price tested the level of 1.7193 and also our first short-term target is at the level of 1.7100 on high volume. The current situation in (4H) timeframe is that we have got upward move on increasing volume. That is a sign that the downward corrective phase ended (we got point D). In the daily chart we can observe weak supply bar on volume below the average. This is a sign that we may see an upstroke and a test of the level of 1.7360 (FE 61.8 %). Since we are in the uptrend, according to the daily chart, I advise you to watch for buying opportunities after correction.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.7142

R2: 1.7189

R3: 1.7265

Support levels:

S1: 1.6991

S2: 1.6991

S3: 1.4713

Trading recommendation: Be careful with selling and look for buying opportunities; I recommend 1.7360 as the second short-term target