Overview:
Since our last analysis the EUR/NZD pair has been trading downward movement, price tested level 1.6422 on high volume. Since we broke previous down swing at price 1.6573, the EUR/NZD started major corrective phase. I placed Fibonacci expansion to find levels where corrective phase may finish and i got FE 100 % at price 1.6357 and FE 161.8 % at price 1.6030.The more chances for reverse point I see around the price 1.6357 since there is an also good supply zone (blue shape on chart). Current situation on (4H) time frame is that there is an increasing volume on previous down move, which is a sign that there is supply on the market. On a daily chart we can also observe the supply bar on volume just above the average which is sign that we may see more down. Since we are in an uptrend according to the daily chart, buying after every down correction looks quite attractive. In our case, buying from price 1.6357 (FE 100 %) and price 1.6030 depend on the market dynamic.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1.6674
R2: 1.6749
R3: 1.6871
Support levels:
S1: 1.6430
S2: 1.6355
S3: 1.6233
Trading recommendation: Be careful with selling and look for buying opportunities after down corrections. I recommend 1.7100 for short-term up target.
