FX.co ★ EUR/NZD analysis for January 21, 2014

Overview:

Since our last analysis, the EUR/NZD pair has been trading downwards, as we expected, the price rejected from the level of 1.6493 on high volume and tested 1.6233 on ultra high volume (selling climax). As you can see in the chart, our FE 161.8 % at 1.6480 held successfully and the price started downward movement from that point.We can observe selling climax at 1.6272 on ultra high volume which is a sign that selling at this stage looks very risky. The first upper stations are FR 38.2 % at 1.6335 and FR 61.8 % at 1.6400. In case that the price continues with downward movement, we may see the testing of previous swing lot at 1.6220. 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 and try to catch bullish continuation phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6437

R2: 1.6489

R3: 1.6574

Support levels:

S1: 1.6268

S2: 1.6216

S3: 1.6132

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