FX.co ★ EUR/NZD: Analysis for August 05, 2013

Overview:

Since our last analysis, the EUR/NZD pair has been trading upwards, as we expected, the price reached our short-term up target at level 1.7100 on high volume. I placed Fibonacci expansion to find the next target level and I got FE 61.8 at price 1.7360 like potential second target in case that price breaks level 1.7100. The current situation on (4H) time frame is that we got demand bars on ultra high volume and we may expect up movement. On the daily chart we can observe demand bar on the volume just above the average and rejection from previous up swing (blue shape), which is a sign that we may see up movement and testing of level 1.7360. I calculated volume in previous down leg and previous up leg and I got increasing on up leg of about 36% which is sign that we changed bearish momentum into bullish momentum (4H chart). Since we are in an uptrend, according to the daily chart, I advise you to watch for buying opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6985

R2: 1.7051

R3: 1.7158

Support levels:

S1: 1.6770

S2: 1.6704

S3: 1.6596

Trading recommendation: Be careful with selling and look for buying opportunities; I recommend 1.7360 for short-term up target, if the price breaks the level 1.7100.