FX.co ★ EUR/NZD analysis for January 13, 2016

Overview: Recently, EUR/NZD has been moving downwards. The price tested the level of 1.6406 in an average volume. In the daily time frame, I found rejection from our SMA100 and SMA150 at the price of 1.6770. In the H4 time frame, I found that supply came in today. Besides, the price is above SMA50, SMA100, and SMA200. Selling EUR/NZD at this stage looks risky. Watch for potential buying opportunities. I placed Fibonacci expansion to find a potential end of downward correction and got Fibonacci expansion 100% at the price of 1.6380 (held successful). I also found a downward channel and potential breakout of the channel will confirm upward continuation. The key resistance level (take profit zone) is at the price of 1.6835. Watch for buying opportunities. Fibonacci Pivot Points: Resistance levels: R1: 1.6685 R2: 1.6735 R3: 1.6810 Support levels: S1: 1.6520 S2: 1.6480 S3: 1.6400 Trading recommendations: The short-term trend is still upward. So, watch for potential buying opportunities on the dips.