Overview:
Since our previous analysis, the EUR/NZD pair has been trading downwards, as we expected, the price rejected from the level of 1.6668 on ultra high volume (selling climax). We can observe selling climax at the price of 1.6511, so selling at this stage looks risky. The EUR/NZD tested our first major upper station FE 61.8 % at the price of 1.6600 and after that we saw rejection. Our first major target has been reached and now we must wait and see for the potential break the level of 1.6666 which may confirm futher upward direction. Next major upper station is a level around the price of 1.6790 (FE 100%). Since EUR/NZD is now is in bearish correction phase and I placed Fibonacci retracement to find potential end of bearish corrective phase. I got FR 38.2% at the price of 1.6510 (currently on the test) and FR 61.8% at the price of 1.6410. I also got submajor FR 61.8 % at the price of 1.6455. EUR/NZD is in short- and mid-term bullish trend, so watch for buying opportunities on the dips and try to catch the bullish continuation phase.
Daily pivot Fibonacci points:
Resistance levels:
R1: 1.6616
R2: 1.6650
R3: 1.6705
Support levels:
S1: 1.6506
S2 : 1.6472
S3: 1.6417
Trading recommendation: Be careful with selling the EUR/NZD pair, watch for buying opportunities and try to catch the bullish continuation phase.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via EUR/NZD analysis for February 20, 2014 . Thanks for your support on EUR/NZD analysis for February 20, 2014
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