Wait for a correction to 109.52-109.49 | 31 August 2021

Technical observation

On the hourly chart above price is trading with an increasing bearish bias between a supportive zone 109.52-109.49 and a resistance level 110.18. I expect a continuation of this bearish movement to the supportive zone I have mentioned above followed by a rejection within it to pick long positions with my take profit at 110.18 and stop loss at 109.29. In case of a clear breakout above the level 110.18 with a big green candle, I expect price to ascend to the upper resistance level 110.79. On the flip side, in case of a breakout below the supportive zone 109.52-109.49, I expect the value of this pair to plummet towards the supportive level 108.75.

Trade recommendation

Wait for a correction to the zone 109.52-109.49 to buy USD.