Forex Technical Analysis: Trend potential – Expecting a rally to 0.9862


Technical observation

On the 4 hour chart above, price rose to the resistance zone 1.0105-1.009 as I had predicted but it could not break above it and as long the value of the pair above is sustained below the same zone I expect a momentum to the lower side, if you picked short positions within the zone mentioned above after a bounce, remain in the trade with your take profit at 0.9862 and stop-loss at 1.0204. In case of a clear break below the level 0.9862 with a big red candle, I expect the value of EUR to plummet after a correction to the broken line and a bounce at it. On the chart above I can only recommend bullish positions above the zone 1.0105-1.009.

Trade recommendation

Remain short with your take profit at 0.9862.

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