Short EUR within 1.2168-1.2159 | 07 June 2021

Technical observation

On the weekly chart above, EUR declined and penetrated below a supportive zone it established at 1.2168-1.2159, it the retraced to the same zone and it was contained within it. As long as price is below this zone, I can only anticipate a surge to the lower side. Right now as it is on the chart above, within the zone 1.2168-1.2159 is the ideal place to pick short positions with your take profit at 1.1994 and stop loss at 1.2208. However, if price is not contained below the zone 1.2168-1.2159 and instead breaks above it with a big green candle; wait for a correction to the just broken zone confirming possible bullish movements of price before you buy EUR.

Trade recommendation

Short EUR within 1.2168-1.2159 with your take profit at 1.1994 and stop loss at 1.2208.