We're neutral | 09 September 2020

Technical observation

USD is rallying with an increasing bearish bias above a supportive line 104.74; I expect this bearish rally to continue to the supportive level followed by a clear breakout below it. My advice, remain flat and wait for a decline to the line 104.74 followed by a clear breakout below it with a big red candle and a correction to it to sell USD with your take profit at 102.26 and stop loss at 105.69. In case of a clear break below the line 102.26 with a big red candle, you can expect further bearish movements of this pair. On the chart above, bullish movements can only be expected in case of a clear breakout above the zone 108.17-107.94.

Trade recommendation

Remain neutral.