We're flat | 05 January 2021

Technical observation

On the 4-hour chart above, price is trading with an increasing bullish bias below a resistance line 1.2307. I expect this upwards movement to continue to the line mentioned above followed by either a clear breakout above it with a big green candle, or a rejection at it followed by a retracement to the supportive zone 1.2182-1.2171. In case of a clear break above the level 1.2307 with a big green candle, wait for a correction to it before you buy this pair, and in case price bounce at the same level, wait for a pullback to the supportive zone mentioned above and a buy a bounce within it with your take profit at 1.2307.

Trade recommendation

Remain neutral.