EUR/NZD analysis for January 16, 2014

Overview:

Since our last analysis, the EUR/NZD pair has been trading upwards, as we expected, the price tested the level of 1.6393 on volume above the average. As you can see in the chart, our FR 61.8 % at 1.6270 held successfully and the price started upward movement from that point. We can observe that strong demand on high volume had entered the market at 1.6300 and caused the price to start upward movement. The price reached our first upper station at 1.6350. If it breaks 1.6400 on high volume, we may see testing of FE 161.8 % at 1.6480. Do not forget EUR/NZD is in short-mid term bullish trend and selling EUR/NZD at this stage looks very risky, so watch for buying opportunities and try to catch bullish continuation phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6349

R2: 1.6373

R3: 1.6410

Support levels:

S1: 1.6274

S2: 1.6250

S3: 1.6212

Trading recommendation: Be careful with selling the EUR/NZD pair, watch for buying opportunities and try to catch bullish continuation phase.