EUR/NZD: analysis for August 16, 2013
Since our last analysis, the EUR/NZD pair has been trading downwards, the price tested the level of 1.6414. The current situation in (4H) timeframe is that we have got decreasing in volume in a downward move which is a sign that this is corrective phase. I placed Fibonacci expansion levels to find the potential end of the downward corrective phase and I have got FE 61.8 % at the price of 1.6292 like a potential level where we may finish corrective phase. In the daily chart, we can observe weak demand 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. I calculated volume in the previous down leg and the prior up leg and I got the up leg increasing by about 36% the down leg, which is a sign that we have changed the bearish momentum into the bullish one (4H chart). 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:
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.
The material has been provided by InstaForex Company – www.instaforex.com