Overview:
Since our last analysis, the EUR/NZD pair has been trading downwards, price tested level 1.6411 on volume just below the average. We are still waiting for larger move and bullish movement. 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 tested level 1.6411 on volume just below the average so we may mark previous down moves like an end of down correction and starting of up movement (trend continuation). On the daily chart we can observe demand bar on 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: 1.6669
R2: 1.6714
R3: 1.6787
Support levels:
S1: 1.6523
S2: 1.6478
S3: 1.6405
Trading recommendation: Be careful with selling and look for buying opportunities I recommend 1.7100 for short-term up target.
