Remain flat | 04 February 2020

Technical observation

Yesterday, price went up on the chart above and is still showing signs of bullish momentum towards the resistance zone 109.75-109.62. Remain flat temporarily and wait for a correction to the zone and a rejection within it to sell USD with your take profit at 106.92 and stop loss at 110.38. In case there’s a clear breach below the line 106.92 with a big red candle, wait for a correction to it and a bounce before you continue short with your take profit at 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

Remain flat.