Overview:
Since our last analysis, the EUR/NZD pair has been trading sideways around the price of 1.6390, we are still waiting for more downward movements. We may expect the testing of Fibonacci RE 61.8% at the price of 1.5915. In the daily chart, we can observe no supply bar on volume just below the average. This is a sign that we need more supply at the moment for the futher downward movement. 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% (1.5915). 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: 1.6404
R2: 1.6450
R3: 1.6524
Support levels:
S1: 1.6256
S2: 1.6210
S3: 1.6136
Trading recommendation: Be careful with buying as we may see the testing of the area around 1.5915, before any upward movement.
