Wait for a retracement to sell USD. | 24 January 2020

Technical observation

USD broke below a supportive zone 109.75-109.62 yesterday with a big red candle and is currently trading below it on an increasing bullish bias. I expect a loss of this movement within the zone for possible bearish price rally towards the level 106.77. My advice, wait for a correction to the zone 109.75-109.62 and a bounce within it to sell USD with your take profit at 106.77 and stop loss at 110.49. In case USD is not contained below the zone 109.75-109.62 and instead penetrates above it, then the breakout below the zone was false and bullish movements of this pair can be expected after a retracement to 109.75-109.62.

Trade recommendation

Wait for a correction to sell USD.