Remain flat | 01 June 2020

Technical observation

On the hourly chart above, price went down below a supportive zone 107.37-107.35 but was not contained, however; it rose above the zone and is currently pulling back to it. I expect a rejection of this bearish momentum within the zone for bullish price rally towards the resistance line 107.89 followed by a possible breakout above it. My advice, remain flat and wait for a correction to the zone 107.37-107.35 and a bounce within it to buy USD with your take profit at 107.89 and stop loss at 107.17. In case of a penetration below 107.37-107.35 followed by a retracement and a bounce, I expect a surge towards 106.88.

Trade recommendation

Remain flat.