The pair is expected to trade in a higher range and maintin its bullish outlook in the short term. Although the pair retreated from 0.7370 (the high of July 13), a support base at 0.7305 has formed and has allowed for a temporary stabilization. The rising 50-period moving average plays a support role. The relative strength index is supported by a rising trend line since July 11.
Hence, as long as 0.7295 is not broken, look for a rebound to 0.7370 and even to 0.7400 in extension.
Strategy: BUY Stop Loss: 0.7295 Take Profit: 0.7370
Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which indicates the bullish position. If it is below the pivot points, it 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.
Resistance levels: 0.7370, 0.7400, and 0.7450
Support levels: 0.7280, 0.7265, and 0.72
The material has been provided by InstaForex Company – www.instaforex.com