FX.co ★ EUR/NZD analysis for October 08, 2014

Overview :

In our last analysis, EUR/NZD has been trading upwards. The price tested the level of 1.6220. We can observe that price found support at the level of 1.6000 but if it breaks the level of 1.6000 in a high volume, we may see a potetntial testing of the level of 1.5900 (swing high like support). I have placed Fibonacci retracement to find potential resistance levels and I got Fibonacci retracement 61.8% at the price of 1.6260. There is also Fibonacci expansion 161.8% at the price of 1.6230 (currently on the test). Be careful when buying and watch for potential selling opportunities after retracement. According to the 4H time frame, we can observe weak demand (low price action on high volume) and potential end of bullish corrective phase (abcd).

Daily Fibonacci pivot levels :

Resistance levels:

R1: 1.6201

R2: 1.6234

R3: 1.6288

Support levels:

S1: 1.6093

S2: 1.6060

S3: 1.6006

Trading recommendations: Be careful when buying the EUR/NZD pair since we may see short-term bearish continuation