- NEO/USD weakness short lived, downside in the pair rejected at session lows at 105.75.
- The pair has shown a decisive break above major trendline resistance at 109.50.
- We see upside intact as long as the pair holds above 5-DMA support. Close below could see some weakness upto 20-DMA at 82.98.
- Technical studies support further upside, we do not see signs of reversal in the pair.
- RSI is strong above 70 levels, 5-DMA sharply higher, 20-DMA supports uptrend.
- Momentum studies are bullish, Stochs are biased higher. We see +ve DMI dominance.
Support levels - 109.22 (5-DMA), 106.35 (127.2% 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) is progresssing well.
Recommendation: Bias higher, stay long.
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