We're neutral | 22 October 2020

Technical observation

On the 4-hour chart above, price is trading with an increasing bearish bias between a supportive level 104.12 and a resistance zone 105.22-105.16. I expect a pullback to the resistance zone and a rejection within it to sell USD with my take profit at 104.12 and stop loss at 105.48. Should price penetrate below the line 104.12 with a big red candle, wait for a correction to it and a bounce to confirm a further momentum to the lower side before you continue short with this pair. On the chart above, as long as USD is contained below the zone 105.22-105.16, you can only anticipate bearish movements.

Trade recommendation

Remain flat.