FX.co ★ EUR/NZD analysis for February 09, 2015

Overview:

In our last analysis EUR/NZD was trading downwards. As we expected, the price has tested the level of 1.5213 in a volume below the average. Since our Fibnocci retracement 38.2% at the price of 1.5420 is broken, we may expext testing of the level of 1.5180. Be careful when selling EUR/NZD at this stage since we may expect reaction from buyers. Anyway, if the price breaks the level of 1.5180, we may see a possible testing of the level of 1.5060. According to the 4H time frame, we can observe lack of demand around the price of 1.5524, which is a sign that buying look risky.

Daily Fibonacci pivot levels:

Resistance levels:

R1: 1.5480

R2: 1.5522

R3: 1.5590

Support levels:

S1: 1.5344

S2: 1.5302

S3: 1.5234

Trading recommendations: Be careful when selling at this stage and watch for potential buying opportunities after retracement (buy on the dips).