The US dollar gave a stellar performance against most major currencies. The Federal Reserve closed its monthly bond-buying program. The pair took support from the ascending trend line, gave a strong close in yesterday’s session. The pair closed above 20Dsma, but is facing strong resistance at the 61.8 fib level of 0.9562. We recommend buying above 0.9562. In the daily chart, we can observe an ascending triangle. The height of the triangle is 164 pips on a closing basis. We can see another huge upswing above 0.9562 for an immediate target at 0.9600 and 0.9625 levels. Above these, 0.9685 and 0.9726 are also possible on a positional basis. Bulls get active only above 0.9562. On the down side, the pair has support at 0.9510, 20Dsma. Below 0.9510 the ascending trend line will provide enough support to push the prices higher. In case, if the prices close below the ascending trend line, the base support at 0.9400 will act as strong support. The pair has been trading within a 160-pip range. A breakout either side will provide more room to trade. For an intraday session, the pair has support at 0.9490. We recommend selling below 0.9490 and buying above 0.9562 levels.
Buying above 0.9562 for targets at 0.9600 and 0.9625
Selling below 0.9490 for targets at 0.9440 and 0.9400
The material has been provided by InstaForex Company – www.instaforex.com