The soft US data pushed the prices to a 4-day low. At the end of the previous week, the pair closed at the highest level. The pair has been enjoying its upswing with higher lows in the weekly chart for 2-years. As we recommended earlier, in case if the pair closes above 1.1279 on a weekly closing basis, the pair will challenge 1.1530 in the near term, 1.1644 and 1.1685 in the medium term and 1.1900 and 1.2350 in the long-term perspective. We are still recommending the same. The weekly support level exists between 1.1275 and 1.1260 levels. The pair has resistance at 1.1425 on a daily closing basis. After making a new swing high, the pair is likely to take 14 days to make another new high. On August 06, 2014 the pair made a new high at 1.0986, after this high it corrected up to 1.0860 and made a new high at 1.0998 on August 23, 2014. The same repeated on October 15, 2014, high was made at 1.1386, then corrected up to 1.1122 and new high was reached at 1.1467 14 days later.
For an intraday session, the support level exists at 1.1300. We recommend safe selling only below 1.1300 with the targets at 1.1293, 1.1264, and 1.1255. Below 1.1255, the panic will be triggered towards 1.1225, 1.1200, and 1.1185 levels. The prices are closed below 12ema and 35DEMA, which means some weakness after a sharp upswing. We recommend safe buying above 1.1400 with the target at 1.1450.
The material has been provided by InstaForex Company - www.instaforex.com
