FX.co ★ EUR/NZD: Analysis for October 16, 2013

Overview:

Since our last analysis, the EUR/NZD pair has been trading downwards,as we expected, the price tested the level of 1.6032 on high volume. We may expect the testing of Fibonacci RE 61.8% at the price of 1.5915. In the daily chart, we can observe supply bar on average volume. This is a sign that we may see futher downward movement. I placed Fibonacci expansion to find a potential end of the corrective phase and I got FE 61.8% at 1.6441 (point D). Since we are in the uptrend, according to the daily chart, we may see retracement from FR 61.8% (1.5915). Anyway, if the price breaks that area, we may see changing in trend dynamics from bullish to bearish.

Daily pivot Fibonacci points:

R1: 1.6219

R2: 1.6259

R3: 1.6325

Support levels:

S1: 1.6088

S2: 1.6048

S3: 1.5983

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