Remain flat | 07 August 2020

Technical observation

On the weekly chart above price is trading with an increasing bearish momentum above a supportive zone 105.02-104.41. I expect a clear breakout below the zone with a big red candle for bearish movements of price. My advice, remain flat and wait for a clear breakout below the zone 105.02-104.41 with a big red candle 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 your way downwards the key levels to look for are; 96.11, 87.36 and the lower supportive level 78.39. As long a price is contained below 105.02-104.41, only bearish movements is expected.

Trade recommendation

Remain flat.