The cross changed its direction at the strong support levels. The cross has been moving northwards for 2 consecutive days. In the daily chart, the pair managed to close above 20 & 50 Dsma. We have been recommending buying this cross. We recommended buying between 1.3450 and 1.3400 with sl 1.3385 with targets at 1.3530, 1.3570, 1.3600, 1.3640, and 1.3680 (May 13th article). The pair made a high at 1.3695. The nearest resistance is seen at 1.3730 100Dema, 1.3765 (the previous high) and 1.3790. In case the price closes above 1.3765, we expect big move looms towards another 200 pips. We had been recommending the same for a while but the break did not happen yet. We expect the cross to make a nominal top around 1.3725 and 1.3790 before moving further. Bulls are likely to aim at the level of 1.4000 later. Traders should keep in mind that bulls must close above 1.3765. We request to book profit at the current levels.
To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com
