- NEO/USD is seen consolidating break above 161.8% Fib at 134 levels, bias higher.
- The pair has edged lower after hitting fresh all-time highs at 169 levels.
- Downside was rejected at lows at 145 levels, finds strong support at 5-DMA at 137.
- Break below 5-DMA finds next major support at 134 (161.8% Fib extension of 3.7385 to 84.41 rally). Near-term weakness only on retrace below.
- The pair is extending upside after a decisive break above major trendline resistance at 109.50.
- Technical studies support further upside, we do not see signs of reversal in the pair.
- Next bull target lies at 187 (227.2% Fibo extension) ahead of 198 (241.4% Fibo)
Support levels - 138.21 (5-DMA), 134.26 (161.8% Fib extension of 3.7385 to 84.41 rally), 82.98 (20-DMA)
Resistance levels - 131.42 (Jan 9th high), 134.26 (161.8% Fib), 214.93 (261.8% Fib)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-NEO-USD-breaks-major-trendline-resistance-at-10950-scope-for-test-of-1618-Fib-at-134-1087646) has hit TP1.
Recommendation: Book partial profits, trail stop loss to 130, hold for upside.
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