Our first target which we predicted in Yesterday’s analysis to hit 113.20 level has been reached today. The pair posted a strong rebound, and is likely to challenge its next resistance at 113.50 in the coming trading hours. Both the 20-period and 50-period moving averages are turning up, and play strong resistance roles. Besides, the relative strength index is bullish above its neutrality area at 50.
To sum up, as long as 112.70 is not broken, look for further advance to 113.50 and 113.80 in extension.
Alternatively, if the price moves in the opposite direction, a short position is recommended below 112.50 with a target at 112.30.
Chart Explanation: The black line shows the pivot point. The current price above the pivot point indicates a bullish position, while the price below the pivot point is a signal for a short position. The red lines show the support levels and the green line indicates the resistance level. These levels can be used to enter and exit trades.
Strategy: Buy, Stop Loss: 112.50, Take Profit: 113.20
Resistance levels: 113.20, 113.50 and 113.75 Support Levels: 112.30, 112.05, 111.75
The material has been provided by InstaForex Company – www.instaforex.com
Source: Forex Review