EUR/NZD analysis for January 23, 2014

Overview:

Since our last analysis, the EUR/NZD pair has been trading upwards,as we expected, the price tested the level of 1.6434 on very high volume. As you can see in the chart, after the selling climatic action at 1.6270, EUR/NZD started upward movement. Currently, we can observe strong demand on the market and selling looks very risky. Price has reached our second target level at 1.6400, and our next upper station is 1.6490 (previous swing high). Do not forget EUR/NZD is in short- and mid-term bullish trend and selling EUR/NZD at this stage looks very risky, so watch for buying opportunities on the dips and try to catch bullish continuation phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6332

R2: 1.6354

R3: 1.6389

Support levels:

S1: 1.6262

S2 : 1.6240

S3: 1.6205

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