Remain flat | 24 July 2020

Technical observation

This week, USD has been trading with an increasing bearish momentum above a supportive zone it established around 105.02-104.41. My expectation is a clear breakout below the zone mentioned above with a big red candle followed by a pullback to it and a bounce for a surge to the lower side. On your way downwards the key levels to look for are; 96.11, 87.36 and 78.39. My advice, remain flat and wait for a clear breakout below the zone 105.02-104.41 followed by a correction to it to sell USD with your take profit at 96.11 and stop loss at 106.79. I can only recommend short positions for the pair on the chart above.

Trade recommendation

Remain flat.