Wait for a correction | 20 April 2021

Technical observation

On the chart above, USD declined and penetrated below a supportive level 109.23 with a big red candle, it then rallied further downwards for some time but could not reach the supportive zone 106.83-106.66. Price is currently trading between the zone mentioned above and the resistance level 109.23 with an increasing bullish bias. This upwards movement is a correction to the key level 109.23 and I expect a loss of it at the same level for a decrease towards 106.83-106.66. My advice, remain neutral with this pair and pick short positions at the line 109.23 after a bounce with your take profit at 106.83 and stop loss at 109.94.

Trade recommendation

Wait for a correction to 109.23 to sell USD.