The US dollar is well placed at higher levels against the Euro, JPY, and CHF. A surprise interest rate cut by China made the USD friendly. The People’s Bank of China cut the one-year benchmark lending rate by 40 basis points to 5.6% and the one-year deposit rate by 25 basis points to 2.75%. The Swiss gold referendum will take place on November 30, 2014. Today, the pair opened with a gap up, but unable to sustain there. The pair has immediate parallel resistance at 0.9742. On the daily chart, the pair has made higher lows and higher highs formation. In case if the price breaches the 0.9742 levels, it can extend its rally up to 0.9950. We have been recommending using every dip to buy with the targets at 0.9800, 0.9840,0.9970, and 1.017. The parallel monthly resistance exists at 0.9751. We recommend buying above 0.9751 with the targets at 0.9820 and 0.9870. If a daily close is above 0.9742, the bulls will challenge new highs by adding 150 or 200 pips on the higher side.
The material has been provided by InstaForex Company – www.instaforex.com