FX.co ★ EUR/NZD analysis for January 28, 2014

Overview:

In our last analysis EUR/NZD was trading downwards. As we expected, the price tested the level of 1.5134 in a volume below the average. I have placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 61.8% at the price of 1.5225 that was held successfully. According to the 4H time frame, we got lack of demand in the backround around the price of 1.5225, which caused price to start with bearish movement. Be careful when buying EUR/NZD and watch for potential selling opportunities after retracement. Any larger supply in a high volume may confirm further bearish phase. Anyway, if we see larger demand on the market, we may expect testing of the level of 1.5430.

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.5286

R2: 1.5329

R3: 1.5399

Support levels:

S1: 1.5146

S2: 1.5103

S3: 1.5033

Trading recommendations: Be careful when buying the EUR/NZD pair since our Fibonacci retracement 61.8% is held successfully