Overview:
Since our last analysis, the EUR/NZD pair has been trading upward movement, as like we expected, price tested level 1.6597. The price rejected from level 1.6221 and tested 1.6597 on very high volume. I placed Fibonacci expansion to find levels where down corrective phase may finish and I got FE 100 % at price 1.6357 and FE 161.8 % at price 1.6030.The current situation on (4H) time frame is that we got buying climax (massive buying), and if price breaks climatic area,we may mark end of down correction and starting of up movement (trend continuation). On a daily chart we can also observe strong demand bar on volume above the average and rejection from previous up swing (blue shape), which is a sign that we may see up continuation and testing of level 1.7100. 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 (FE 161.8 %) depends on the market dynamics.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1.6578
R2: 1.6660
R3: 1.6792
Support levels:
S1: 1.6314
S2: 1.6232
S3: 1.6100
Trading recommendation: Be careful with selling and look for buying opportunities after down corrections. I recommend 1.7100 for short-term up target
