Expecting a momentum to the level 1.0985 | 11 January 2022

Technical observation

On the daily chart above, the price retraced to the resistance zone 1.1390-1.1371 but could not break above it, instead, it bounced right below the zone and since then it has been trading with an increasing bearish bias. I expect a continuation of this downwards movement to the supportive level 1.0985 followed by either a clear breakout below it with a big red candle or a bounce at it followed by another retracement to the zone I have mentioned above. If you are currently holding short positions with this pair, I would advise that you remain in the trade with your take profit at 1.0985 and stop-loss at 1.1480. I can only recommend bullish positions above zone 1.1390-1.1371.

Trade recommendation

Remain short with your take profit at 1.0985.