FX.co ★ EUR/NZD: Analysis for January 02, 2014

Overview:

Since our last analysis, the EUR/NZD pair has been trading upwards, as we expected, the price tested level of 1.6826 on high volume. As you can see from the chart, the price rejected from level of 1.6717 (around FE 100 %), so we marked level of 1.6717 as the end of bearish corrective phase. According to the 30-min chart, we can observe high volume on upper leg, which is good sign that we may see bullish continuiation. The price may test again the previous swing highs at 1.6920 and 1.6990. Be careful with selling this pair and watch for buying opportunities.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6798

R2: 1.6829

R3: 1.6880

Support levels:

S1: 1.6696

S2: 1.6665

S3: 1.6614

Trading recommendation: Be careful with selling the EUR/NZD pair and watch for buying opportunities after correction.