Analysis of EUR/NZD for January 30, 2014

Overview:

Since our last analysis, the EUR/NZD pair has been trading upwards. Just as we expected, the price rejected from the level of 1.6422 and tested
level of 1.6721 on the high volume. We can observe that strong demand has
entered the market at price 1.6515 which is good sign of bullish strength. I
have placed Fibonacci levels to find next upper level and I got FE major 61.8
% at price 1.6800. There is a chance that we may see smaller bearish correction
in reaction of very high volume so price may test area around the levels of
1.6535-1.6520, before bullish contunuation. Do not forget that EUR/NZD is in short-
and mid-term bullish trend and selling EUR/NZD at this stage looks very risky,
so watch for buying opportunities on the dips and try to catch the bullish continuation
phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6691

R2: 1.6756

R3: 1.6861

Support levels:

S1: 1.6481

S2 : 1.6416

S3: 1.6311

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

The material has been provided by InstaForex Company – www.instaforex.com