FX.co ★ EUR/NZD analysis for January 16, 2014

Overview:

In our last analysis EUR/NZD was trading sideways around the price of 1.4875. According to the daily time frame, we can observe strong supply in an ultra high volume (selling climax), so selling EUR/NZD at this stage looks very risky. Our Fibonacci expansion 161.8% at the price of 1.4900 is on the test. Be careful when selling since we may expect reaction from buyers. According to the H4 time frame, we can observe selling climax in the background and weak supply around the level of 1.4800. Any larger demand in a high volume may confirm further bullish corrective phase. Anyway, if the price breaks the level of 1.4900 in a stong price action, we may see a potential testing of the level of 1.4425.

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.5168

R2: 1.5279

R3: 1.5458

Support levels:

S1: 1.4809

S2: 1.4698

S3: 1.4518

Trading recommendations: Be careful when selling the EUR/NZD pair at this stage since the price is testing Fibonacci expansion 161.8%.