EUR/NZD analysis for January 26, 2014

Overview:

In our last analysis EUR/NZD was trading upwards. The price tested the level of 1.5168 in a a volume below the average. According to the daily time frame, we can observe supply in a a volume above the average. I have placed Fibonacci retracement to find potential resistance levels and got Fibonacci retracement 61.8% at the price of 1.5225. According to the 4H time frame, we can observe a lack of supply at the price of 1.4887 which caused price to start with bullish 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.

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.5136

R2: 1.5201

R3: 1.5308

Support levels:

S1: 1.4922

S2: 1.4857

S3: 1.4750

Trading recommendations: Be careful when buying the EUR/NZD pair since we are very close to our Fibonacci retracement 61.8%.