FX.co ★ EUR/NZD: analysis for January 09, 2014

Overview:

Since our last analysis, the EUR/NZD pair has been trading upward movement, price rejected from the level of 1.6347 and tested level of 1.6489 . As you can see on the 1H chart, strong demand on ultra high volume entered В the market which is good sign for possible major bullish continuation. Since our FE 161.8 % is held successfully, selling EUR/NZD looks very risky. Anyway, to confirm bullish continuation phase, price needs to break the area of 1.6500., and then we may see testing of FR 61.8% at 1.6580 and potential bullish continuation from that point. Anyway, selling looks very risky so watch for buying opportunities above the 1.6500.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6459

R2: 1.6487

R3: 1.6532

Support levels:

S1: 1.6369

S2: 1.6341

S3: 1.6296

Trading recommendation: Be careful with selling the EUR/NZD pair and watch for buying opportunities above 1.6500