Our targets which we predicted in yesterday’s analysis have been hit. The pair broke below the key support at 111.45, which becomes the key resistance now. The downward momentum is further reinforced by both declining 20-period and 50-period moving averages. The relative strength index is below its neutrality level at 50.
Hence, as long as 111.45 is not surpassed, look for a further downside to 110.35 and even to 110.00 in extension.
Alternatively, if the price moves in the opposite direction than predicted, a long position is recommended above 111.45 with a target at 111.80.
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 sign 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: SELL, Stop Loss: 111.45, Take Profit: 110.35
Resistance levels: 112.40, 112.70, and 113.15 Support Levels: 111.10, 110.75, 110.50
The material has been provided by InstaForex Company – www.instaforex.com