FX.co ★ EUR/NZD analysis for August 19, 2014

Overview:

Since our last analysis, EUR/NZD has been trading upwards. The price was tested and rejected from the level of 1.5843. Price has been successfully rejected from our Fibonacci retracement 61.8% at the price of 1.5900, which caused the 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 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. According to the 1H timeframe, we can observe absorption volume since buying climax got abosrbed by sellers.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.5784

R2: 1.5794

R3: 1.5810

Support levels:

S1: 1.5752

S2: 1.5742

S3: 1.5726

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