Wait | 28 January 2020

Technical observation

USD is trading below a zone 109.75-109.62 it recently penetrated. I expect a correction to this zone followed by a bounce within it for bearish price rally towards the key level 106.77. Remain flat and wait for a correction to the zone followed by a rejection within it to sell USD with your take profit at 106.77 and stop loss at 110.48. In case this take profit is hit and there is a clear breach below it, price could plummet further to the supportive key level marked.104.44. On the daily chart above, as long as USD is contained below the zone 109.75-109.62, only short positions look ideal and may be recommended.

Trade recommendation

Wait for a retracement to sell USD.