Buy a bounce within 1.2143-1.2140 | 14 January 2021

Technical observation

On the chart above, price is trading with an increasing bearish momentum above a supportive zine it established around 1.2143-1.2140; my expectation is either a rejection of price within the zone or a clear penetration below it with a big red candle. In case of a bounce within the zone, pick long positions within it with your take profit at 1.2269 and stop loss at 1.2071. However, if there is a clear break below the same zone with a big red candle, wait for a correction to it and a bounce confirming a possible momentum to the lower side before you pick short positions with your take profit at 1.1907 and stop loss at 1.2200.

Trade recommendation

Wait for a bounce within 1.2143-1.2140 to buy EUR.