We're neutral | 17 August 2021

Technical observation

EUR is trading with an increasing bearish bias above a supportive level 1.1715, I expect either a further surge to the supportive level mentioned above followed by a clear breakout below it for a further momentum to the lower side or loss of this downwards movement followed by a retracement to the zone 1.1988-1.1963. My advice, In case of a clear break below the level 1.1715, wait for a pullback to the same level and a bounce at it before you short this pair towards the key level 1.1378 and in case of a correction to the zone 1.1988-1.1963, pick short positions within it after a bounce with your take profit at 1.175 and stop loss at 1.2064.

Trade recommendation

Remain neutral.