FX.co ★ EUR/NZD analysis for February 04, 2014

Overview:

Since our previous analysis, the EUR/NZD pair has been trading downwards, we tested the level of 1.6553 on higher volume. We can observe that supply has entered the market at the price of 1.6690 which triggered bearish corrective movement. I have placed Fibonacci levels to find possible end of the bearish corrective phase and i got FR 38.2% at the price 1.6565 and FR 61.8% at the price 1.6435. First upper station is still the same like in previous analysis; it is the level of 1.6800. 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: 1.6746

R2: 1.6780

R3: 1.6835

Support levels:

S1: 1.6637

S2 : 1.6603

S3: 1.6549

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