All our targets which we predicted in previous analysis have been hit. The pair posted a rebound from the rising 50-period moving average. The key support at 154.75 should limit the downside potential. Even though a continuation of consolidation cannot be ruled out, its extent should be limited.
To sum up, above 154.75, look for a new challenge with targets at 156.10 and 156.45 in extension.
Alternatively, if the price moves in the direction opposite to the forecast, a short position is recommended below 154.75 with the target at 156.10
Strategy: BUY, stop loss at 154.75, take profit at 156.10
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 point, 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: 156.10, 156.45, and 157.00.
Support levels: 154.10, 153.70, and 153.00
The material has been provided by InstaForex Company - www.instaforex.com