Forex Technical Analysis: Trend potential – we are bearish towards 1.1986.


Technical observation

On the 4 hour chart above price is trading with an increasing bullish bias below the resistance zone 1.2332-1.2311 and as long as it is contained below this zone I expect possible bearish movements of price towards the supportive level 1.1986. If you picked short positions within the zone mentioned above after a bounce, remain in trade with your take profit at 1.1986 and stop-loss at 1.2406. Should there be a clear break below the level 1.1986 with a big red candle, I expect a further momentum to the lower side after a correction to the broken line; however, in case of a penetration above the zone 1.2332-1.2311, I expect bullish movements to the level 1.2653.

Trade recommendation

Remain short with your take profit at 1.1986.

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