We're neutral temporarily | 17 May 2019

Technical observation

USD is trading on an increasing bearish momentum above a supportive level 108.52, my expectation is a clear penetration below the line with a big red candle followed by a correction to it for possible downwards momentum to the key line 103.15.My advice, remain neutral temporarily and wait for a break below the line 1108.52 and a correction to it to sell USD with your take profit at 103.15 and stop loss at 110.69, in case this take profit is hit and there’s a clear penetration below it, more bearish rally of this pair can be expected. Long positions may only be advisable in case of a break above 114.76-114.14 and a retracement to it.

Trade recommendation

Remain neutral temporarily.