Overview:
Since our last analysis, the EUR/NZD pair has been trading upwards, the price tested the level of 1.6486 on high volume. We are still waiting for more downward movements. Since the price has broken FE 261.8% (1.6276), we may expect the testing of Fibonacci RE 61.8% at the price of 1.5915. In the daily chart, we can observe demand bar on volume just above the average. This is a sign that we are in corrective phase. I placed Fibonacci expansion to find a potential end of the corrective phase and I got FE 61.8 % at 1.6441, FE 100 % at the price of 1.6580 and FE 161.8 % (extreme extension) at the price of 1.6800. Since we are in the uptrend, according to the daily chart, we may see retracement from FR 61.8%. Anyway, if the price breaks that area, we may see changing in trend dynamics from bullish to bearish.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1.6395
R2: 1.6428
R3: 1.6482
Support levels:
S1: 1.6287
S2: 1.6254
S3: 1.6200
Trading recommendation: Be careful with buying as we may see the testing of the area around 1.5915, before any upward movement.
