Remain flat | 27 July 2020

Technical observation

On the weekly chart above, price went down with a big red candle last week but did not reach the supportive zone 105.02-104.04. This week I expect further bearish rally towards the zone mentioned above followed by a clear breakout below it with a big red candle for bearish movements of price. My advice, remain flat and wait for a clear penetration below the zone 105.02-104.04 with a big red candle followed by a correction and a bounce within the zone to pick short positions with your take profit at 96.11 and stop loss at 106.79. In case price does not break below 105.02-104.04, we can expect bullish movement USD.

Trade recommendation

Remain flat.