FX.co ★ Analysis of EUR/NZD for January 05, 2014

Overview:

In our last analysis, EUR/NZD was trading upwards. As we expected, the price tested the level of 1.5675 in an ultra high volume (buying climax). According to the H4 time frame, we can can observe strong rejection from our resistance level, which caused price to start with downward movement. My advice is to watch for potential selling opportunities. Our major support level is around the price of 1.5400 (Fibonacci expansion 100%).

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.5624

R2: 1.5659

R3: 1.5714

Support levels:

S1: 1.5513

S2: 1.5478

S3: 1.5422

Trading recommendations: Be careful when buying the EUR/NZD pair at this stage, since we can observe strong rejection in the background.