FX.co ★ EUR/NZD analysis for August 18, 2014

Overview:

Since our last analysis, EUR/NZD has been trading sideways. We are still waiting for larger movement and higher activity (volume). Price has been successfully rejected from our Fibonacci retracement 61.8% at the price of 1.5900, which casued price to start with downward movement. I have placed Fibonacci retracement to find support levels and I got Fibonaccci retracement 38.2% at the price of 1.5710 (currently on the test) and Fibonaccci retracement 61.8% at the price of 1.5595. Watch for potential selling opportunities after retracement. So, if the price breaks the level of 1.5710 in a higher volume, we may see potential testing the level of 1.5595.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.5794

R2: 1.5809

R3: 1.5832

Support levels:

S1: 1.5747

S2: 1.5732

S3: 1.5708

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