Remain flat | 31 January 2019

Technical observation

USD went below a supportive zone 109.25-109.09 with a big red candle and is still declining. I expect a correction to the just broken zone followed by a rejection within it or a breach above it.Should there be a correction to 109.25-109.09 followed by a breach above it then this breakout was false and you can wait for a correction to the zone and pick long position with your take profit at 111.45 and stop loss at 108.61, but should there be a correction to 109.25-109.09 followed by a rejection within it then I expect possible bearish momentum towards the key level 106.96 and I would advise you wait for a second correction to the zone to sell USD.

Trade recommendation

Remain flat.

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