Remain short | 29 December 2021

Technical observation

On the daily chart above price retraced to the resistance zone 1.1327-1.1345 but could not break above it, instead it was rejected below the same zone and since then it has been trading with an increasing bearish bias. I expect further rally to the supportive level 1.0992 followed by a clear breakout below it with a big red candle and a further surge towards the level 1.0640. If you sold EUR within the zone mentioned above after a bounce, I would advise you remain short with your take profit at 1.0992 and stop loss at 1.1449. As it is on the chart above, I can only recommend bullish positions in case of a clear break above the zone 1.1327-1.1345.

Trade recommendation

Remain short with your take profit at 1.0992.