FX.co ★ EUR/NZD: analysis for October 23, 2013

Overview:

Since our last analysis, the EUR/NZD pair has been trading upwards, the price tested 1.6452 on ultra high volume and made bullish corrective phase; we are still expecting more downward movements. We may expect the testing of Fibonacci RE 61.8% at the price of 1.5915. In the daily chart, we can observe no demand bar on volume below the average. 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: 1.6221

R2: 1.6248

R3: 1.6292

Support levels:

S1: 1.6134

S2: 1.6107

S3: 1.6064

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