EUR/NZD analysis for August 11, 2014

Overview:

Since our last analysis, EUR/NZD has been trading sideways. I have placed Fibonacci expansion to find potential end of a bullish corrective phase (abcd) and I got Fibonacci expansion 161.8% at the price of 1.5815 (currently on the test). We can observe a weak demand in a low volume according to the 4H time frame, which is a sign that buying at this stage looks risky. Watch for potential selling opportunities. According to the previous price action, we got support at the price of 1.5625 (swing high like resistance). We are still waiting for larger movement and larger activity on this pair. Be careful when buying this pair and watch for potential selling opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.5861

R2: 1.5885

R3: 1.5922

Support levels:

S1: 1.5786

S2: 1.5762

S3: 1.5724

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