Remain flat | 07 September 2020

Technical observation

EUR is trading has been trading with an increasing bearish momentum between a supportive zone 1.1716-1.1689. I expect this bearish rally to continue to the supportive zone followed by a rejection within it to pick long position. However, this pair could still penetrate below the same zone with a big red candle. My advice, remain flat with this pair and wait for a correction to the supportive zone mentioned above and a rejection within it to buy EUR with your take profit at 1.1989 and stop loss at 1.1594. In case of a break below 1.1716-1.1689, bearish movements of this pair is expected towards the supportive line 1.1424.

Trade recommendation

Remain neutral.