Our targets which we mentioned in yesterday's analysis have been hit. The pair posted a rebound from 0.9600 and broke above both 20-period and 50-period moving averages. The upward momentum is further reinforced by the rising 20-period and 50-period moving averages. The relative strength index is above its neutrality level at 50.
The U.S. dollar weakened against most major currencies as US Fed Chair Yellen offered no surprise on raising interest rates gradually.
Therefore, as long as 0.9640 holds on the downside, expect a further rise to 0.9695 and 0.9720 in extension.
Chart Explanation: The black line shows the pivot point; the present price above pivot point indicates the bullish position and below pivot points indicates the short position. 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.
Strategy: BUY, Stop Loss: 0.9640, Take Profit: 0.9695
Resistance levels: 0.9695, 0.9720, and 0.9775
Support levels: 0.9615, 0.9600, and 0.9575
