The cross consolidated for 6 days before moving higher to the crucial resistance level. The pair managed to close above 20Dsma and 50Dsma. The parallel resistance seems between 1.3750 200Wsma and 1.3763. These are the make or break levels of this cross. In the recent 4 months, the 200Wsma acted as a trend change level twice. In early 2015, the cross made a low at 1.3754 and held the support by 200wsma and changed the direction towards 1.4489 within 2 weeks. Later in March 2015, the 200Wsma acted as resistance thrice and dragged the cross towards 1.3024 from 1.3758 in a week time. Again, the cross has been testing its fate at the same 200wsma at 1.3750. The positional technical view favors buying with sl 1.3385. If the price closes above 1.3765, fresh longs will be added to this cross aiming for 1.3820 and 1.4070 in the short term. The pair is on a verge of an inverse bullish head-and-shoulder break. If the cross is unable to give a break on the higher end in a day or two, the pair can correct towards 1.3600 and 1.3520. Use this opportunity to enter buying trade with sl 1.3385. Recently we break the story of EUR/USD,GBP/USD & EUR/NZD which gave good money. Today, traders eye Canadian building permits. As usual we expect the negative readings. In this case, the pair is likely to give a break on the higher side. If the readings are positive, the pair can correct 100odd pips. For an intraday view, we recommend buying with small targets 1.3700, 1.3720 and even 1.3750. In case price close above 1.3765 big spikes looms in the coming days. In case, of positive data we recommend selling below 1.3620 with targets at 1.3600, 1.3580, and 1.3560. The real panic will create below 1.3560 towards 1.3520, 1.3500, and 1.3480.
Trade: Buying with sl 1.3630, targets are at 1.3700, 1.3720, 1.3745, and 1.3760.
Risk selling below 1.3620, safe selling below 1.3600 with targets at 1.3580 and 1.3560.
The material has been provided by InstaForex Company – www.instaforex.com