We're flat | 04 February 2020

Technical observation

Yesterday EUR went down with a big red candle and I still expect more of this bearish rally towards the key supportive zone 1.0992-1.0988. If you are in a trade already, remain in the trade with your take profit at 1.0992 and stop loss at 1.1238. However, If you are not short yet, remain flat and wait for a either a decline to 1.0992-1.0988 followed by a breach below it to sell EUR or; a rise to the resistance zone 1.1187-1.1175 followed by a breakout above it with a big green candle and a correction to it to buy EUR. As long as price is contained below 1.1187-1.1175, only short positions can be recommended.

Trade recommendation

Remain flat.