Forex Technical Analysis: Trend potential – Wait for a pullback to buy USD


Technical observation

On the daily chart above price rose steadily to the resistance level 136.60 but did not break above it, instead, it bounce at the same line and currently it is trading with an increasing bearish bias. This downwards movement is a correction to the supportive zone 127.37126.73 and I expect a rejection of price within it to pick short positions with my take profit at 136.60 and stop-loss at 123.88. In case of a break above the level 136.60, I anticipate a further momentum to the upper side after a correction to the broken line. As it is on the chart above, I can only recommend short positions in case of a clear penetration below the zone 127.37126.73.

Trade recommendation

Wait for a correction to the zone 127.37126.73 to buy USD.

You may check other analytical reviews on FreshForex website. Source: