FX.co ★ EUR/NZD: Analysis for September 05, 2013

Overview:

Since our last analysis the EUR/NZD pair has been trading in the downward movement, the price tested the level of 1.6621 and rejected upwards,as like we expected. We are still waiting for the upward movement and testing the level of 1.7360. I placed Fibonacci Expansion levels to find the potential end of the downward corrective phase and I got FE 161.8% at the price around level of 1.6600. The current situation in (4H) timeframe is that we have got downward move on decreasing volumes. That is a sign that the downward corrective phase may end (we got potential point D). In the daily chart we can observe no supply bar on volume below the average. This is a sign that this is a corrective phase and we should wait for the end of the corrective phase before we see an ascending move 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.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6843

R2: 1.6906

R3: 1.7009

Support levels:

S1: 1.6638

S2: 1.6575

S3: 1.6473

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