FX.co ★ EUR/NZD analysis for February 21, 2014

Overview:

Since our previous analysis, the EUR/NZD pair has been trading downwards, the price tested and rejected from the level of 1.6492 on an average volume. Our previous analysis is still active. We can observe selling climax at the price of 1.6517, so selling at this stage looks risky. Our first major target has been reached and now we must wait and see for the potential break the level of 1.6666 which may confirm futher upward direction. Next major upper station is a level around the price of 1.6790 (FE 100%). Our Fibonacci retracement 38.2% at the price of 1.6508 held successfully and we may expect further bullish continuation. If the price breaks around the level of 1.6500, we can also observe lack of supply, which is another sign that selling at this stage looks risky. EUR/NZD is in short- and mid-term bullish trend, so watch for buying opportunities on the dips and try to catch the bullish continuation phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6631

R2: 1.6672

R3: 1.6739

Support levels:

S1: 1.6496

S2 : 1.6455

S3: 1.6387

Trading recommendation: Be careful with selling the EUR/NZD pair, watch for buying opportunities and try to catch the bullish continuation phase.