Forex Technical Analysis: Trend potential – Wait


Technical observation

On the 4 hour chart above price declined up to the supportive level 1.0357 as I had predicted but did not break below it instead, it bounced above the level and since then it has been trading with an increasing bullish bias. This upwards movement is a correction to the resistance zone 1.0595-1.0580 and I expect a rejection of price within it to re-sell EUR with my take profit at 1.0357 and stop-loss at 1.0654. In case of a clear break below the level 1.0357 with a big red candle, wait for a correction to it before you continue short, on the other hand should there be a clear penetration above the zone 1.0595-1.0580, you can expect bullish movement of price towards the resistance level 1.0781.

Trade recommendation

Remain flat.

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