Overview:
Since our last analysis, the EUR/NZD pair has been trading sideways around 1.6450, we are still waiting for larger movement. As you can see on the 1H chart, there is a buying climax, which is the first sign of bullish strength. Since our FE 161.8 % is held successfully, selling EUR/NZD looks very risky. Anyway, to confirm bullish continuation and end of bearish corrective phase, we need good volume background and strong demand on the market, and also supply to disappear from the market. Be careful with selling EUR/NZD since we may see bullish continuation. Currenlty the price is testing Fibonacci Retracement 38.2 % at 1.6500 from the most recent swings. If the price breaks the area of 1.6500, we may see testing of FR 61.8 % at 1.6570. In case the price continues with downward movement, we may see testing of FR 61.8 % at 1.6325 before bullish continuation. Anyway, selling near the lows is very risky so watch for buying opportunities after bearish correction.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1.6474
R2: 1.6495
R3: 1.6528
Support levels:
S1: 1.6407
S2: 1.6386
S3: 1.6352
Trading recommendation: Be careful with selling the EUR/NZD pair and watch for buying opportunities after bearish correction.
