Overview:
Since our last analysis, the EUR/NZD pair has been trading downwards. The price tested the level of 1.6819 due to high volume. Since we have got our first shor-term target at the level of 1.700 I have placed Fibonacci expansion to find next target level and I have got FE 61.8 at price 1.7360 as a potential second target in case that the price breaks the level of 1.7100. The current situation in (4H) timeframe is that we have got demand bars on ultra high volume and we may expect an upward movement. In the daily chart, we can observe supply bar in high volume and the bounce back from the previous ascendant swing (blue shape), which is a sign that we may see an upstroke and the test of the level of 1.7360. I calculated volume in the previous down leg and the prior up leg and I got the up leg increasing by about 36% the down leg, which is a sign that we changed the bearish momentum into the bullish one (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: 1.7094
R2: 1.7145
R3: 1.7227
Support levels:
S1: 1.6930
S2: 1.6879
S3: 1.6797
Trading recommendation: Be careful with selling and look for buying opportunities; I recommend 1.7360 for short-term up target, if the price breaks the level of 1.7100.
