Forex Technical Analysis: Trend potential – Expecting a pullback to the level 1.0405


Technical observation

Last week the value of the pair on the chart above price declined below the supportive level 1.0405 and this week it opened bearish below the same line. I expect a loss of this bearish movement followed by a correction to the level 1.0405 and a bounce at it to sell EUR with my take profit at 1.09624 and stop-loss at 1.0899. In case of a clear break below the level 0.9624 with a big red candle, I expect price to decline further after a correction to the broken line, however, should there be a clear break above the level 1.0405, you can wait a correction to the resistance zone 1.1541-1.1495 and a rejection within it to re-sell EUR.

Trade recommendation

Wait for a pullback to the level 1.0405 to sell EUR.

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