we are flat | 07 December 2021

Technical observation

On the 4 hour chart above price is retracing to the resistance zone it established at 113.85-113.77 and I expect a rejection of price within the same zone followed by a surge to the lower side. My advice, remain neutral temporarily and wait for a correction to the zone 113.85-113.77 then sell a bounce within it with your take profit at 112.72 and stop loss at 114.48. In case there is a clear breakout below the level 112.72 with a big red candle, I expect a further surge to the lower supportive level 111.24, on the other hand should there be a clear break above the zone 113.85-113.77 with a big green candle then you can expect USD to ascend towards 114.90.

Trade recommendation

Remain flat temporarily.