Forex Technical Analysis: Trend potential – We are neutral.


Technical observation

On the 4 hour chart above price declined to the supportive level 1.0111 but could not break below it, instead, it bounced at the same level and for some time now it has been trading with an increasing bullish bias. My expectation is a further rise to the resistance zone 1.0373-1.0337 followed by a rejection within it to pick short positions with my take profit at 1.0111 and stop-loss at 1.0459. In case of a clear break below the supportive level 1.0111, I expect price to plunge further after a correction to the broken line and a bounce at it. Right now as it is on the chart above remaining neutral is ideal than picking any positions.

Trade recommendation

Remain flat.

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