Technical analysis of EUR/NZD for February 08, 2016

The EUR/NZD pair broke above the descending channel on the 8th of January under the heavy volume. The Fibonacci applied to the channel breakout point shows that all resistance levels have been broken while the final target has not been tested.

EUR/NZD corrected down to re-test channel breakout point, that is 50% Fibs support level (S2 - 1.6560). This support has been rejected two times confirming the validity of an uptrend.

Consider buying EUR/NZD on a corrective move down near S1 (1.6730), targeting R2 (1.7285) resistance level. The stop loss should be placed just below S2.

Support: 1.6730, 1.6560, 1.6390

Resistance: 1.6945, 1.7285