Remain flat | 31 July 2020

Technical observation

USD is trading with an increasing bearish momentum above a supportive zone it established around 105.02-104.41, my expectation is a clear break below the zone with a big red candle followed by a retracement to it and a bounce within the zone for a surge to the lower side. My advice, remain flat and wait for a clear breakout below the zone 105.02-104.41 followed by a correction and a bounce within it to sell USD with your take profit at 96.11 and stop loss at 107.14. On the weekly chart above, only short positions look ideal and can be recommended below the supportive zone 105.02-104.41.

Trade recommendation

Remain flat.