Wait for a retracement to the zone 1.1616-1.1610 to buy EUR | 19 October 2021

Technical observation

On the 4 hour chart above, price rose steadily and penetrated above the zone it established at 1.1616-1.1610 with a big green candle. It is still trading with an increasing bullish bias and I expect further bullish movements of price. However, despite this bullish movement I expect a pullback to the just broken zone and a rejection within it to buy EUR with my take profit at 1.1745 and stop loss at 1.1571. Should there be a clear breakout above the resistance level 1.1745 with a big green candle, I anticipate a further surge in price towards the upper key level 1.1847. I can only recommend short positions below the zone 1.1616-1.1610.

Trade recommendation

Wait for a correction to the zone 1.1616-1.1610 to buy EUR.