Remain short | 05 August 2020

Technical observation

On the chart above, price pulled back to a resistance zone 106.15-106.05 but could not break above it; it was contained below the zone and is currently trading with an increasing bearish momentum. I expect this downwards movement to continue to the supportive line 104.50 followed by a clear breach below it for a further surge to the lower side. If you went short with this pair within the zone 106.15-106.05 after a bounce, remain in the trade with your take profit at 104.50 and stop loss at 106.60. In case of a breakout above the zone 106.15-106.05 with a big green candle, I expect bullish movements of USD.

Trade recommendation

Remain short with your take profit at 104.50.