FX.co ★ EUR/NZD: analysis for December 27, 2013

Overview:

Since our last analysis, the EUR/NZD pair has been trading upwards, like we expected, the price tested the level of 1.6934 (met FE 161.8 %) on high volume. As you can see from the chart, we got selling climax (large volume) at price 1.6675 and after that we saw volume leveling off, which causes price to start bullish continuation phase. Since price broke our FE 161.8 %, next upper station may be level of 1.7000 (major FE 61.8 %). According to the 30-min chart we can see increasing volume on upper legs, which is good sign of EUR strenght. Be careful with selling this pair and watch for buying on dips.

Daily pivot Fibonacci points:

Resistance levels:

R1: 1.6789

R2: 1.6814

R3: 1.6853

Support levels:

S1: 1.6711  

S2: 1.6686

S3: 1.6647

Trading recommendation: Be careful with selling the EUR/NZD pair and watch for buying opportunities with potential upper station at 1.7000