FX.co ★ EUR/NZD analysis for August 12, 2014

Overview:

Since our last analysis, EUR/NZD has been trading upwards. The price tested and rejected from the level of 1.5893 (Fibonacci retracement 61.8%). I have placed Fibonacci expansion to find potential end of a bullish corrective phase (abcd) and I got Fibonacci expansion 161.8% at the price of 1.5815. We can observe supply in a volume above the average according to the 4H time frame, which is a sign that buying at this stage looks risky. Watch for potential selling opportunities. According to the previous price action, we got support at the price of 1.5625 (swing high like resistance). We are still waiting for larger movement and larger activity on this pair. Be careful when buying this pair and watch for potential selling opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.5842

R2: 1.5853

R3: 1.5869

Support levels:

S1: 1.5809

S2: 1.5798

S3: 1.5781

Trading recommendations: Be careful when buying the EUR/NZD pair and watch for selling opportunities after retracement.