FX.co ★ EUR/NZD analysis for September 20, 2014

Overview:

Our last analysis, EUR/NZD has been trading downwards. As we expected, the price tested the level of 1.6215 in an ultra high volume (selling climax). Our Fibonacci expansion 161.8% at the price of 1.6300 held successful, which is a sign that buying looks risky. According to the 4H time frame, EUR/NZD is in a bearish corrective phase. I have placed Fibonacci retracement to find support levels and I got Fibonacci retracement 38.2% at the price of 1.6165 and Fibonacci retracement 61.8% at the price of 1.5900. Anyway, to confirm further bullish movement, the price needs to break the level of 1.6300 in a high volume and with healthy price action.

Daily Fibonacci pivot levels :

Resistance levels:

R1: 1.6426

R2: 1.6506

R3: 1.6635

Support levels:

S1: 1.6169

S2: 1.6090

S3: 1.5961

Trading recommendations: Be careful when buying the EUR/NZD pair, since we since we can observe bearish corrective phase