Overview:
Since our last analysis, the EUR/NZD pair has been trading upward movement, as we expected, the price tested the level of 1.6792. The price rejected from level 1.6221 and tested 1.6792 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 broke buying climatic zone so we may mark previous down moves like end of down correction and starting of up movement (trend continuation). On a daily chart we can observe no demand bar on volume below 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. I calculated volume in previous down leg and previous up leg and i got increasing on up leg of about 36% which is sign that we changed bearish momentum into bullish momentum (4H chart). Since we are in an uptrend, according to the daily chart, I advise you to watch for buying opportunities.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1.6812
R2: 1.6865
R3: 1.6949
Support levels:
S1: 1.6643
S2: 1.6590
S3: 1.6505
Trading recommendation: Be careful with selling and look for buying opportunities I recommend 1.7100 for short-term up target.
