FX.co ★ EUR/NZD: analysis for August 20, 2013

Overview:

Since our last analysis, the EUR/NZD pair has been trading upwards movement, as like we expected, the price tested the level of 1.6789 on high volume. The current situation in (4H) timeframe is that we have got increasing in volume in a upward move which is a sign that down corrective phase has ended (we got point D). In the daily chart, we can observe weak supply bar on volume below 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. Since we are in an uptrend, according to the daily chart, I advise you to watch for buying opportunities after the correction.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6554

R2: 1.6607

R3: 1.6694

Support levels:

S1: 1.6381

S2: 1.6328

S3: 1.6242

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