We're short | 05 July 2019

Technical observation

USD is trading below a resistance zone 108.75-108.57 and I expect it to decline towards the key level 106.45 followed by a breakout below it with a big red candle for a further surge to the lower side. If you sold USD within the zone 108.75-108.57 after a bounce, remain short with your take profit at 106.45 and stop loss at 109.61, however, if you are currently neutral remain so and wait for either another correction to 108.75-108.57 and a bounce within it or a clear break below 106.45 followed by a retracement and a rejection at it to sell this pair. Long positions may only be recommended above 108.75-108.57.

Trade recommendation

Remain short.