FX.co ★ EUR/NZD analysis for January 27, 2014

Overview:

In our last analysis EUR/NZD was trading upwards. The price tested the level of 1.5267 in a 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 (currently on the test). According to the 4H time frame, we can observe 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. Anyway, if we see larger demand on the market, we may expect testing the level of 1.5430.

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.5219

R2: 1.5283

R3: 1.5386

Support levels:

S1: 1.5013

S2: 1.4950

S3: 1.4846

Trading recommendations: Be careful when buying the EUR/NZD pair since our Fibonacci retracement 61.8% is on the test.