Overview:
Since our last analysis the EUR/NZD pair has been trading in upward moves, price tested our FE 261.8 % (1.6620) and made new high at price 1.6670 on high volume. If daily bar finishes below 1.6620 we may still expect starting of corrective phase but if daily bar finishes above 1.6620 I will exit my short positions. On the daily chart we got two climatic bars in background (ultra high volume bars) which is a good sign that EUR/NZD is in overbought zone, so we may expect future down and starting of larger corrective phase on EUR/NZD. On the (4H) chart I calculated previous up legs and I got that first up leg has 8,600 of total volume and second leg has 2,500 of total volume which is decreasing of 70%. Since price broke 1.3660 and made new high at 1.6570 we deleted our potential Fibonacci targets but we placed potential targets on previous swing low at price 1.6130 and swing high at price 1.6050. Buying this pair looks very risky since we are in overbought zone so I advise you to watch for selling opportunities.
Daily pivot Fibonacci points:
Resistance levels:
R1 : 1.6584
R2 : 1.6637
R3 : 1.6722
Support levels:
S1 : 1.6414
S2 : 1.6361
S3 : 1.6276
Trading recommendation: Be careful with short-term buying and look for selling opportunities. I recommend 1.6130 and 1.6050 for down short-term targets.
