FX.co ★ Analysis of EUR/NZD for January 08, 2014

Overview:

In our last analysis, EUR/NZD was trading downwards. As we expected, the price tested the level of 1.5059 in a high volume. According to the H4 time frame, we can can observe supply in a volume above the average, which is a sign that buying EUR/NZD still looks risky. Our Fibonacci expansion 100% at the price of 1.5400 got broken so we may see a potential testing of the level of 1.4950 (Fibonacci expansion 161.8%). Be careful when buying and watch for potential selling opportunities after retracement. We can also observe weak reaction from buyers, which is a sign that they are not ready for stronger bullish correctiion.

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.5305

R2: 1.5338

R3: 1.5391

Support levels:

S1: 1.5200

S2: 1.5167

S3: 1.5115

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