We are bearish towards 1.0697. | 07 January 2022

Technical observation

This week EUR has been trading with an increasing bearish bias and I expect the current candle to close below the resistance zone 1.1413-1.1375. If you sold this pair within the zone I have mentioned above after a bounce, remain in the trade with your take profit at 1.0697 and stop loss at 1.1571. If price declines and breaks below the supportive level 1.0697, I expect a further momentum to the lower side. On the other hand, should there be a clear breakout above the resistance zone 1.1413-1.1375 with a big green candle, bullish movements can be anticipated after a correction to the broken zone; however, as long EUR is sustained below the same zone, I can only recommend short positions.

Trade recommendation

Remain short with your take profit at 1.0697.