Remain short towards 105.16 | 02 September 2020

Technical observation

USD retraced to a resistance zone it established around 106.16-106.09 and did not break above it. Price was contained below the zone and is currently rallying with an increasing bearish bias. I expect this downwards movement to continue to the supportive level 105.16 followed by a clear breakout below it for a further decline towards the lower supportive level 104.28. If you picked short positions within the zone 106.16-106.09 after a rejection, hold on to that position with your take profit at 105.16 and stop loss at 106.46. In case of a break above 106.16-107, wait for a retracement and rejection within it before you buy USD.

Trade recommendation

Remain short with your take profit at 105.16.