Wait for a correction to sell EUR. | 03 February 2020

Technical observation

EUR did not break below the supportive line 1.0992; instead, it went up a big green candle. More bullish price rally towards the zone 1.1187-1.1175 is still expected. Wait for a correction to the zone mentioned above and a rejection within it to sell EUR with your take profit at 1.0992 and stop loss at 1.1252. If this take profit is hit and there’s a clear breakout below it with a big red candle, wait for a correction to it to confirm further bearish movement of price before you continue short with this pair. On the daily chart above, as long as price is contained below the resistance zone 1.1187-1.1175, only short positions can be recommended.

Trade recommendation

Wait for a correction to 1.1187-1.1175 to sell EUR.