All our upside targets which we predicted in yesterday's analysis. The pair keeps trading on the upside after locating a key support at 112.85. Currently, it is around the 20-period moving average while being supported by the ascending 50-period moving average. The relative strength index has managed to stay above the neutrality level of 50, indicating a lack of downward momentum for the pair.
On the economic data front, payroll processor Automatic Data Processing (ADP) reported that U.S. employers added 250,000 private jobs in December, higher than +195,000 expected. Later today, the Labor Department will post its official December jobs report. The number of nonfarm payrolls is expected to have jumped 180,000.
With a bullish intraday outlook, the pair is expected to proceed towards the first upside target at 113.40 before moving higher to 113.270.
Alternatively, if the price moves in the opposite direction, a short position is recommended below 112.85 with a target of 112.70.
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 at 112.85, take profit at 113.40.
Resistance levels: 113.40, 113.70, and 114.00
Support levels: 112.70, 112.50, and 112.15.
The material has been provided by InstaForex Company - www.instaforex.com