FX.co ★ EUR/NZD: Analysis for January 20, 2014

Overview:

Since our last analysis, the EUR/NZD pair has been trading upwards, as we expected, the price tested the level of 1.6493 on high volume. 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 supply had entered the market at 1.6460, so we may see smaller downward and potential testing of FR 38.2 % at 1.6390 or FR 61.8 % at price 1.6325. The price reached our third upper station at 1.6480 (FE 161.8 %) on high volume. If the price breaks level of 1.6515 (major FR 38.2 %), we may see testing of FR 61.8 % at price 1.6695. 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: 1.6450

R2: 1.6493

R3: 1.6562

Support levels:

S1: 1.6313

S2: 1.6270

S3: 1.6202

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