Our target which we predicted yesterday has been hit. The pair has rebounded from 109.90 and expected to continue its rebound. The outlook to the pair is positive above a rising trend line. The rising 20-period and 50-period moving averages are playing support roles and maintain the upside bias. The relative strength index stands firmly above its neutrality level at 50 and lacks downward momentum.
As long as 110.25 holds on the downside, look for a further advance towards 111.30 and even 111.70 in extension.
Alternatively, if the price moves in the opposite direction, a short position is recommended below 110.25 with a target at 111.30.
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: 110.25, Take Profit: 111.30
Resistance levels: 111.30, 111.70, and 112.00 Support Levels: 109.90, 109.45, 109
The material has been provided by InstaForex Company – www.instaforex.com