Forex Technical Analysis: Trend potential – Expecting a rally towards 1.0460.


Technical observation

On the 4 hour chart above the price pulled back to the resistance zone 1.0754-1.0766 as I had anticipated and it did not break above it, instead it bounced within the same zone and currently it is trading with an increasing bearish bias. Today I expect a continuation of this downwards movement of price and in case you are currently holding short positions with EUR I recommend that you remain in the trade with your take profit at 1.0460 and stop-loss at, in case of a clear penetration below the level 1.0460, I expect a further surge to the lower side, and the key levels to look for include 1.0154 and the level 0.9740.

Trade recommendation

Remain short with your take profit at 1.0460.

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