Remain flat | 05 January 2021

Technical observation

The pair on the chart above is trading with an increasing bearish bias above a supportive level 102.90; my expectation is either a clear breakout below the line with a big red candle, or a rejection at it followed by a retracement to the resistance zone 103.31-103.27. If this pair breaks below the line 102.90 with a big red candle, wait for a pullback t it before picking short position towards the level 102.70, and if it does not break below the line, wait for a pullback to the resistance zone mentioned above to sell USD with your take profit at 102.90. As it is o the chart above, only short positions look ideal.

Trade recommendation

Remain flat.