06.08.201412:12 Forex Analysis & Reviews: EUR/NZD analysis for August 06, 2014

Long-term review

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Overview:

Since our last analysis, EUR/NZD has been trading upwards. The price tested the level of 1.5863 in a volume below average according to the daily timeframe. I have placed Fibonacci expansion to find potential end of a bullish corrective phase and I got Fibonacci expansion 161.8% at the price of 1.5815 (currently on the test). According to the 1H timeframe, we can observe buying climax (ultra high volume demand) and after that weak demand, which is a sign that buying EUR/NZD at this stage looks very risky. I have placed Fibonacci retracement from the most recent downward leg and I got Fibonacci retracement 61.8% at the price of 1.5900. Watch for potential selling opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.5810

R2: 1.5836

R3: 1.5879

Support levels:

S1: 1.5725

S2: 1.5699

S3: 1.5657

Trading recommendations: Be careful when buying the EUR/NZD pair and watch for selling opportunities after retracement.

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