EUR/NZD analysis for August 12, 2014

Overview:

Since our
last analysis, EUR/NZD has been trading upwards. The price tested and
rejected from the level of 1.5893 (Fibonacci retracement 61.8%). 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. We can observe supply in a volume above the average
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: 1.5842

R2: 1.5853

R3: 1.5869

Support
levels:

S1: 1.5809

S2: 1.5798

S3: 1.5781

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

The material has been provided by InstaForex Company – www.instaforex.com