EUR/NZD analysis for August 14, 2014

Overview:

Since our last analysis, EUR/NZD has been trading downwards. As we expected, the price was tested at the level of 1.5711 in a volume above the average. We can observe successful rejection from our Fibonacci expansion 161.8% at the price of 1.5815, 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). I have placed Fibonacci retracement from the most recent upward leg and I got Fibonacci retracement 38.2 % at the price of 1.5710 (currently on the test). Be careful when buying this pair and watch for potential selling opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.5851

R2: 1.5871

R3: 1.5902

Support levels:

S1: 1.5789

S2: 1.5769

S3: 1.5738

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