Wait for a retracement to sell USD. | 19 August 2020

Technical observation

The pair on the daily chart above is trading with an increasing bullish momentum below a resistance zone 106.67-106.50 it recently penetrated. I expect this upwards movement to continue to the resistance zone mentioned above followed by a bounce within it for bearish rally of this pair. My advice, wait for a retracement to the zone 106.67-106.50 and a rejection within it to sell USD with your take profit at 104.44 and stop loss at 107.53. In case there is clear breakout below the line 104.44 with a big red candle, I expect the value of this pair to plummet to the supportive level marked at 102.28.

Trade recommendation

Wait for a correction to 106.67-106.50 to sell USD.