Wait | 11 May 2021

Technical observation

On the chart above, EUR is trading below a resistance level 1.2176 with an increasing bullish bias, if it rises and penetrates above the same line , I expect buyers to still have the control of the market hence a further momentum to the upper side. In case of a rally to the lower side, pick long positions within the supportive zone 1.1993-1.2002 after a bounce within it. Should there be a clear breakout below the zone mentioned above with a big red candle, it will signal a change in momentum of price hence you can anticipate a rally to the lower side. As long as price is contained above the zone 1.1993-1.2002, you can only expect upwards movements.

Trade recommendation

Remain neutral.