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EUR/NZD analysis for January 12, 2016

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Overview:

Recently, EUR/NZD has been moving downwards. The price tested the level of 1.6505 in an average volume. In the daily time frame, I found rejection from our SMA100 and SMA150 at the price of 1.6770. In the H4 time frame, I found that supply came in today. Besides, the price is above SMA50, SMA100, and SMA200. Selling EUR/NZD at this stage looks risky. Watch for potential buying opportunities. I placed Fibonacci expansion to find a potential end of downward correction and got Fibonacci expansion 61.8% at the price of 1.6515. The resistance level is at the price of 1.6835.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6760

R2: 1.6830

R3: 1.6950

Support levels:

S1: 1.6520

S2: 1.6445

S3: 1.6325

Trading recommendations: The short-term trend is still upward. So, watch for potential buying opportunities on the dips.

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