Sell EUR within the zone 1.1665-1.1626 | 22 October 2021

Technical observation

On the weekly chart above, price is trading with an increasing bullish bias between the resistance zone 1.1665-1.1626; I expect either a rejection of this bullish movement within this zone followed by a rally to the lower side, or a breakout above the same zone with a big green candle. My advice, wait for a second retracement to the zone I have mentioned above and pick short positions within it after a bounce with your take profit at 1.0826 and stop loss at 1.1878. If price is not sustained below the zone I have mentioned above and instead it clearly breaks above it with a big green candle, I expect a pullback to the just broken zone and a bounce within it followed by a surge to the upper side.

Trade recommendation

Wait for a second pullback to the zone 1.1665-1.1626 to sell EUR.