We're flat | 18 May 2020

Technical observation

The pair on the hourly chart above is trading between a supportive zone 106.93-106.89 and a resistance line 107.36. I expect either a rise to the resistance line followed by a clear penetration above it with a big green candle, or, a decline to the supportive zone and a bounce within it. In case of break above the line 107.36, wait for a correction and a rejection at it to buy USD and in case of a decline to the zone 106.93-106.89, buy USD within it with your take profit at 107.36 and stop loss at 106.72. As it is on the chart above, as long as USD is contained above the zone 106.93-106.89 only long positions can be recommended.

Trade recommendation

Remain neutral temporarily.