We're neutral | 03 September 2021

Technical observation

On the chart above, price is still retracing to the supportive trend line as indicated, my expectation is a loss of the current bearish movement at the line followed by a momentum to the upper side. My advice, remain neutral temporarily and buy USD at the lower trend after a bounce with your take profit at 110.37 and stop loss at 109.58. In case price is not contained above the trend line and instead there is a clear breakout below it with a big red candle, I expect a surge to the lower side after a correction to the broken level, on the flip side, in case of a penetration above the level 110.37, I expect a an elevation to the level 110.74 and a possible breakout above it.

Trade recommendation

Remain flat temporarily.