We're neutral | 11 January 2021

Technical observation

On the 4-hour chart above, price is trading with an increasing bearish momentum within a supportive zone 1.2182-1.2171 with an increasing bearish momentum. I expect a clear breakout below the zone with a big red candle followed by a pullback to it and a bounce for a further decline to the lower side. My advice, remain flat and wait for a clear break below the zone 1.2182-1.2171 with a big candle and a retracement to it to sell EUR with your take profit at 1.2050 and stop loss at 1.2238. In case of a break below the line 1.2055, you can expect a further bearish rally to the zone 1.1907-1.1893.

Trade recommendation

Remain neutral.