Remain flat | 04 January 2022

Technical observation

Yesterday EUR did not rise as I had anticipated, instead it declined with a big red candle and currently it is trading with an increasing bullish bias between the supportive zone 1.1238-1.1229 and a resistance zone 1.1380-1.1372. In case this pair rises to the resistance zone I have mentioned above and clearly breaks above it with a big green candle, wait for a correction to the just broken zone then buy a bounce within it with your take profit at 1.1482 and stop loss at 1.1328, however, as long as the value of the pair on the 4 hour chart above is sustained below the zone 1.1380-1.1372, I can only recommend short positions.

Trade recommendation

Remain neutral.