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

Overview:

Since our last analysis, the EUR/NZD pair has been trading sideways, around the price of 1.6333, we are still waiting for more downward movements. Since the price has broken FE 261.8% (1.6276), we may expect the testing of Fibonacci RE 61.8% at the price of 1.5915. In the daily chart, we can observe neutral bar on volume just above the average. This is a sign that we may see further 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, we may see changing in trend dynamics from bullish to bearish.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6335

R2: 1.6362

R3: 1.6406

Support levels:

S1: 1.6246

S2: 1.6219

S3: 1.6174

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