We are short towards 104.50. | 11 August 2020

Technical observation

USD retraced to a resistance zone it established around 106.15-106.05 and could not break above it, price was contained below the zone and is currently trading with an increasing bearish momentum. I expect this downwards movement to continue to the supportive level marked at 104.50 followed by a clear breakout below it. Within the zone 106.15-106.05 was the ideal place to place a sell order after a bounce with your take profit at 104.50 and stop loss at 106.60. On the 4-hour chart above, as long as price is contained below the resistance zone 106.15-106.05, I expect only bearish price movements.

Trade recommendation

We are short towards 104.50.