EUR/NZD: Analysis for January 20, 2014

Overview:

Since our last
analysis, the EUR/NZD pair has been trading upwards, as we expected, the price
tested the level of 1.6493 on high volume. As you can see in the chart, our FR
61.8 % at 1.6270 held successfully and the price started upward movement from
that point. We can observe that supply had entered the market at 1.6460, so we
may see smaller downward and potential testing of FR 38.2 % at 1.6390 or
FR 61.8 % at price 1.6325. The price reached our third upper station at 1.6480
(FE 161.8 %) on high volume. If the price breaks level of 1.6515 (major FR 38.2 %),
we may see testing of FR 61.8 % at price 1.6695. Do not forget EUR/NZD is in
short-mid term bullish trend and selling EUR/NZD at this stage looks very
risky, so watch for buying opportunities and try to catch bullish continuation
phase.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6450

R2: 1.6493

R3: 1.6562

Support levels:

S1: 1.6313

S2: 1.6270

S3: 1.6202

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

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