EUR/NZD analysis for February 05, 2014

Overview:

Since our previous analysis, the EUR/NZD pair has been trading
downwards, we tested the level of 1.6363 on ultra high volume (selling climax).
We can observe selling climax at the price 1.6363 and also testing of our
Fibonacci Retracement 61.8 % (1.6432).. Be careful with selling this pair since
we got selling climax and Fibonacci retracement level around the price of
1.6430. 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.In case that price
breaks the level of 1.6360 on higher volume, we may see testing of the level
1.6310 (major Fibonacci expansion 61.8%) before any bullish movement.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6679

R2: 1.6780

R3: 1.6943

Support levels:

S1: 1.6353

S2 : 1.6252

S3: 1.6089

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