Expecting a momentum to the level 112.60 | 08 December 2021

Technical observation

USD retraced to the resistance zone it established at 113.74-113.79 but it could not break above it, price was retained below the zone and as long as it stays there, I can only recommend short positions for this pair. My advice, if you sold USD within the zone I have mentioned above after a bounce, remain in the trade with your take profit at 112.60 and stop loss at 114.21. If price hits the key level 112.60 and there is a clear breakout below it with a big red candle, I anticipate a further surge to the lower supportive level 110.76 or even lower the level 109.15. I can only recommend bullish positions above the zone 113.74-113.79.

Trade recommendation

Remain short with your take profit at 1112.60.