Forex Technical Analysis: Trend potential – Wait for a correction to the zone 134.94-134.74


Technical observation

On the 4 hour chart above, price is trading with an increasing bearish bias above a supportive zone it established at 134.94-134.74 and I expect a continuation of this downwards movement to the same zone followed by a rejection within it to pick long positions with my take profit at 139.14 and stop-loss at 133.48. If price is not sustained above the zone 134.94-134.74 but clearly breaks below it with a big red candle, I expect the value of USD to plummet towards the supportive level 131.48 or even lower to the level 126.55. Right now as it is on the chart above, remaining neutral is ideal than picking any positions.

Trade recommendation

Wait for a correction to the zone 134.94-134.74 to buy USD.

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