Short USD within 108.37-108.22 | 27 April 2021

Technical observation

USD retraced to the resistance zone 108.37-108.22 and it did not break above it as I had expected. As long as price is below this zone I expect the value of this pair to plummet to the lower side. Right now within the zone 108.37-108.22 is the ideal place to pick short positions with your take profit at the supportive level 104.55 and stop loss at 109.06. Should there be a clear breakout below the key level 104.55 with a big red candle, I expect a further surge in price to the lower side. As it is on the daily chart above, I can only recommend bullish positions in case of a break above the zone 108.37-108.22 followed by a retracement to it.

Trade recommendation

Sell USD within 108.37-108.22 with your take profit at 104.55.