12.08.201312:43 Forex Analysis & Reviews: EUR/NZD: Analysis for August 12, 2013

Overview:

Since our last analysis, the EUR/NZD pair has been trading sideways around the price of 1.6620, we are still waiting for a larger move and future uptrend. Since we have got our first short-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 the price of 1.7360 as a potential second target in case the price breaks the level of 1.7100. The current situation in (4H) timeframe is that we have got decreasing in volume in down move which is sign that this is corrective phase. In the daily chart, we can observe no supply bar on volume just above the average and a bounce back from the previous ascendant swing (blue shape), which is a sign that we may see an upstroke and a 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 have 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: 1.6711

R2: 1.6759

R3: 1.6835

Support levels:

S1: 1.6558

S2: 1.6510

S3: 1.6433  

Trading recommendation: Be careful with selling and look for buying opportunities; I recommend 1.7100 for the short-term upward target and 1.7360 if the price breaks the level of 1.7100.