Forex Technical Analysis: Trend potential – Wait for a correction to the zone 1.0804-1.0778


Technical observation

The value of the pair on the chart above declined to the supportive level 1.0040 and currently it is trading at it with an increasing bearish bias, however, I expect a loss of this downwards movement followed by a correction to the resistance zone 1.0804-1.0778 and a rejection within it to pick short positions with my take profit at 1.0040 and stop-loss at 1.1036. If price is not rejected at the level 1.0040 but clearly breaks below it with a big red candle, I expect it to plummet further after a pullback to the broken line, On the other hand, I expect bullish movements of price in case of a clear penetration above the zone 1.0804-1.0778.

Trade recommendation

Wait for a correction to the zone 1.0804-1.0778 to sell EUR.

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