We are flat temporarily | 18 January 2022

Technical observation

The pair on the chart above is trading with an increasing bearish bias above the supportive zone it established at 1.1398-1.1387, I expect a continuation of this downwards movement to the same zone followed by a rejection within it to buy this pair with my take profit at 1.1511 and stop loss at 1.1352. In case of a clear break above the level 1.1511 with a big green candle, I expect a further surge towards the upper key level 1.1658. On the other hand, should there be a clear breakout below the zone mentioned above with a big red candle; I expect possible bearish movements of price after a correction to the broken zone and a rejection within it.

Trade recommendation

Remain neutral.