FX.co ★ EUR/NZD: Analysis for September 20, 2013

Overview:

Since our last analysis, the EUR/NZD pair has been trading sideways; around the price 1.6153 we are still waiting for more downward movement. Since the price has broken FE 261.8% (1.6276), we may expect testing of Fibonacci RE 61.8% at the price of 1.5915. In the daily chart we can observe supply bar on high volume. This is a sign that we may expect more downward movements. Since we are in the uptrend, according to the daily chart, we may see retracement from FR 61.8 %. Anyway, if the price breaks that area also, we may see changing in trend dynamic from bullish to bearish.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6205

R2: 1.6242

R3: 1.6300

Support levels:

S1: 1.6089

S2: 1.6052

S3: 1.5994

Trading recommendation: Be careful with buying since we may see testing of the area around 1.5915 before any upward movement.