FX.co ★ EUR/NZD : Analysis for August 08, 2013

Overview:

Since our last analysis, the EUR/NZD pair has been trading downwards, the price has tested the level of 1.6661 on high volume. We are still waiting larger move and future uptrend. Since we have got our first short-term target at the level of 1.700 I have placed Fibonacci expansion to find next target level and I have got FE 61.8 at the price of 1.7360 as a potential second target in case the price breaks the level of 1.7100. The current situation in (4H) timeframe is that we have got demand bars on ultra high volume and we may expect an upward movement. In the daily chart, we can observe supply bar on high volume and the bounce back from the previous ascendant swing (blue shape), which is a sign that we may see an upstroke and a test of the level of 1.7360. I calculated volume in the previous down leg and the prior up leg and I got the up leg increasing by about 36% the down leg, which is a sign that we changed the bearish momentum into the bullish one (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: 1.6835

R2: 1.6884

R3: 1.6964

Support levels:

S1: 1.6675

S2: 1.6626

S3: 1.6546

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