We're flat | 05 May 2020

Technical observation

On the daily chart above price is rallying between a supportive level 1.2209-1.2173 and a resistance zone 1.2770-1.2746. Price could either decline to the support or rise to the resistance zone. In case of a rise to the resistance, I expect a possible penetration above it with a big green candle followed by a bounce for possible bullish momentum. However, should there be a clear breach below the zone 1.220901.2173 with a big red candle, I expect bearish price movements towards 1.1468. If you bought this pair on the 4-hour chart within 1.2421-1.2412, remain long with your take profit at the level 1.2627.

Trade recommendation

Remain flat.