FX.co ★ EUR/NZD: Analysis for October 02, 2013

Overview:

Since our last analysis, the EUR/NZD pair has been trading upwards, the price tested the level of 1.6486 on high volume. 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 demand bar on volume just above the average. This is a sign that we are in corrective phase. I placed Fibonacci expansion to find a potential end of the corrective phase and I got FE 61.8 % at 1.6441, FE 100 % at the price of 1.6580 and FE 161.8 % (extreme extension) at the price of 1.6800. 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: 1.6395

R2: 1.6428

R3: 1.6482

Support levels:

S1: 1.6287

S2: 1.6254

S3: 1.6200

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