Forex Technical Analysis: Trend potential – We are neutral.


Technical observation

On the weekly chart above price sent a tail to the supportive level 0.9955 but could not break below it, instead it bounced at the same line and since then price is trading with an increasing bullish bias. This week I expect a continuation of this upwards movement towards the resistance zone 1.0742-1.0696 followed by a rejection within it and I would recommend that you remain flat and wait for a correction to the zone i have mentioned above then sell a bounce within it with your take profit at 0.9955 and stop-loss at 1.1056. I can only recommend long positions in case of a clear break above the zone 1.0742-1.0696.

Trade recommendation

Remain neutral.

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