EUR/NZD analysis for January 23, 2014

Overview:

In our last analysis EUR/NZD was trading downwards. The price tested the level of 1.4887 in a high volume. According to the daily time frame, we can observe supply in a high volume. Our Fibonacci retracement 61.8% at the price of 1.5415 has beem held successfully which is a sign that buying looks risky. According to the 4H time frame, we can observe lack of supply at the price of 1.4887, so we may expect reaction from buyers. I have placed Fibonacci retracement and got Fibonacci retracement 38.2% at the price of 1.5095 and Fibonacci retracement 61.8% at the price of 1.5225.

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.5356

R2: 1.5437

R3: 1.5568

Support levels:

S1: 1.5094

S2: 1.5013

S3: 1.4882

Trading recommendations: Be careful when selling the EUR/NZD pair since we have strong supply in the background.