The cross is trading at 3-week high. The cross managed to breach the 20Wsma, but was unable to sustain above that. In the daily chart, we can see the minor double top at 137.75 levels on a closing basis. On a monthly closing basis, the pair must close above 138.48 levels. In case, if the cross closes below 138.48 we can clearly see the double top formation in the monthly charts representing a downward move towards 135.45 levels. In case, if the cross manages to close above 138.48 the pair can extend its upswing towards 139.40 and 139.90 levels. Including today, we have 1 more trading session left in the current month. In the longer term picture we can see the 131.40 and 129.0 breaks, below this, another steep correction towards 2013 February and March lows. In the current month, the cross erased the 3/4th of its losses. We will re-analyze the chart in case if the pair closes above 138.48 on a monthly closing basis. The Euro is weaker than the Yen.
For an intraday basis, the cross looks weak only below 137.40 levels. We recommend buying above 137.75 levels. In the h4 chart, the hourly Stochastics is indicating a selling signal. The intraday trading pattern is framed between 137.40 and 137.75. We recommend selling below 137.30 for targets at 136.90 and 135.60 levels. We recommend buying above 137.75 and strong momentum only above 138.02 levels. In the hourly chart, the pair made a double top at 138.02 levels. We can expect a strong upswing only above 138.02.
Trade:
Risky traders, buying above 137.75
Safe traders, buying above 138.02
Selling below 137.30
The material has been provided by InstaForex Company - www.instaforex.com
