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EUR/NZD analysis for January 26, 2016

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Overview:

Recently, EUR/NZD has been moving sideways in the area of 1.6670. In the daily time frame, we can observe a bullish bar but in a low volume, which is a sign that buying looks risky. I have placed Fibonacci retracement to find potential resistance and I found Fibonacci retracement 61.8% at the level of 1.7180 (successfully held few days ago). In the H4 time frame, the price has broken our intraday upward trend line, and we may see possible downward movement. Be careful when buying and watch for potential selling opportunities.The short-term take profit zone is set at the level of 1.5850.

Fibonacci Pivot Points:

Resistance levels:

R1: 1.6830

R2: 1.6895

R3: 1.7000

Support levels:

S1: 1.6620

S2: 1.6550

S3: 1.6450

Trading recommendations: Intraday trend is downward. Watch for potential selling opportunities.

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