Forex Technical Analysis: Trend potential – we are flat


Technical observation

On the daily chart above price rose up to the resistance level 136.65 but could not break above it, instead it bounced below the level and it is currently trading with an increasing bullish bias. This downwards movement is a correction to the supportive level 126.81 and I expect a rejection of price at it to pick long positions with my take profit at 136.65 and stop-loss at 123.88. In case of a clear break above the level 136.65, I expect a price to ascend further after a correction to the broken line, however, should there be a clear break below the line 126.81, I expect the value of the pair above to plummet towards the level 113.20.

Trade recommendation

Wait for a correction to the level 126.81 to sell USD.

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