Remain short | 05 February 2020

Technical observation

USD rose to the resistance zone 109.75-109.62 but could not break above it and was rejected. Currently, price is rallying on an increasing bearish momentum and I expect this movement to continue towards the level 106.77. If you sold USD within 109.75-109.62, remain short with your take profit at 106.77 and stop loss at 110.40. If this take profit is hit and there is a clear break below it with a big red candle, further bearish movements towards the support 104.44 can be expected. On the chart above as long as price is contained below the zone 109.75-109.62 only short positions can be recommended.

Trade recommendation

Remain short with your take profit at 106.77.