Forex Technical Analysis: Trend potential – We are short towards 0.9264


Technical observation

On the weekly chart above, price pulled back to the resistance level 1.0345 but could not break above it, instead it bounced at the same and this week it has been trading with an increasing bullish bias. My expectation is a continuation of this downwards movement towards the supportive level 0.9264 followed by either a clear break below it with a big red candle or a rejection of price at it. If you sold EUR at the level 1.0345 after a bounce, remain short with your take profit at 0.9264 and stop-loss at 1.0742. I can only recommend bullish positions in case line of a clear break above the resistance zone 1.1571-1.1459.

Trade recommendation

Remain short with your take profit at 0.9264.

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