EUR/NZD analysis for February 12, 2014

Overview:

Since our previous analysis, the EUR/NZD pair has been
trading downwards, the price tested the level of 1.6275 on ultra high volume (selling
climax). We can observe selling climax at the price of 1.6275 which is sign
that selling at this stage looks risky. The area of 1.6300-1.6280 is major support
since we’ve got major Fibonacci expansion 61.8% (1.6300) and sub major FE 61.8% at
the price of 1.6285. Selling around these areas looks very risky. If the price
breaks the level of 1.6280 on higher volume, we may see possible testing the
level of 1.6240-1.6220 before possible bullish continuation phase. EUR/NZD is in
short- and mid-term bullish trend, so watch for buying opportunities on the dips
and try to catch the bullish continuation phase.

Daily pivot Fibonacci points:

Resistance levels:

R1:1.6479

R2: 1.6515

R3: 1.6575

Support levels:

S1: 1.6359

S2 : 1.6323

S3: 1.6263

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