Our first target which we predicted in yesterday’s analysis has been hit. Despite the recent rebound, the pair is still capped by a declining 50-period moving average. The relative strength is below its neutrality level at 50. The upward potential is likely to be limited by the resistance at 151.75.
To conclude, as long as this key level holds on the upside, look for another drop with targets at 150.50 and 150.10 in extension.
Alternatively, if the price moves in the direction opposite to the forecast, a long position is recommended above 151.75 with the target at 152.35
Strategy: SELL, Stop Loss: 151.75, Take Profit: 150.50
Chart Explanation: the black line shows the pivot point. The price above the pivot point indicates long positions; and when it is below the pivot points, it indicates short positions. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 152.35, 152.85, and 153.15
Support levels: 150.50, 150.10, and 149.45
The material has been provided by InstaForex Company – www.instaforex.com