Forex Technical Analysis: Trend potential – We are neutral.


Technical observation

On the daily chart above price has been on a steady downwards trend for several days now and I still expect a continuation of this bearish movement towards the supportive level 0.9905. However, price could either break below this line with a big red candle or bounce at it, In case of a clear break below this level, I expect price to surge further to the lower side after a correction to the broken line but if there is a rejection of price at the same line, I expect this pair to retrace towards the resistance zone 1.0785-1.0736. On the chart above, I can only recommend bullish positions in case of a break above the zone 1.0785-1.0736.

Trade recommendation

Remain neutral.

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