EUR/NZD analysis for February 03, 2014

Overview:

Since our previous analysis, the EUR/NZD pair has been trading
sideways around the price of 1.6660, we are still waiting potential testing of
the level of 1.6800 (major FE 61%).We can observe that strong demand has
entered the market at the price of 1.6613 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 the price 1.6800. There is a chance that we may see smaller bearish
correction and potential testing of the level of 1.6540 (FR 38.2%) in reaction of buying climax,
but general direction is bullish. Do not forget that EUR/NZD is in short- and
mid-term bullish trend and selling EUR/NZD at this stage looks very risky. Watch
for buying opportunities on the dips and try to catch the bullish continuation phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6729

R2: 1.6772

R3: 1.6840

Support levels:

S1: 1.6593

S2 : 1.6550

S3: 1.6482

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