We're short | 01 September 2020

Technical observation

The pair above broke above a resistance zone 106.16-106.09 with a big green candle but was not contained above the zone. Price penetrated below the same zone recently with a big red candle then rallied downwards up to a supportive level marked at 105.16. USD then retraced to the zone 106.16-106.09 and it could not break above it, price was contained below the zone and is currently rallying with an increasing bearish momentum. If you sold USD within 106.16-106.09 after a bounce, remain short with your take profit at 105.16 and stop loss at 106.41.In case of a break below 105.16, I expect a surge to 104.28.

Trade recommendation

Remain short with your take profit at 105.16.