Expecting a surge to 1.1236 | 24 January 2022

Technical observation

On the 4 hour chart above, price retraced to the resistance zone it established at 1.1360-1.1352 but it could not break above it, price bounced below the zone and since then it has been trading with an increasing bullish bias, I expect a continuation of this upwards downwards movement to the supportive level 1.1236 followed by a either a clear breakout below it with a big red candle or a bounce at it followed by another correction to the zone mentioned above. If you sold EUR within the zone 1.1360-1.1352 after a bounce, remain short with your take profit at 1.1236 and stop loss at 1.1393. I can only recommend bullish positions above the zone 1.1360-1.1352.

Trade recommendation

Remain short with your take profit at 1.1236.