Wait | 03 February 2022

Technical observation

For several days now, the pair on the daily chart above has been trading with an increasing bias, this downwards movement is a correction to the supportive level 112.73 and I expect it to continue to the same line followed by a bounce at it to pick long positions. However, in case price does not bounce above the line 112.73 but instead breaks below it with a big red candle, you can expect a further surge to the lower side after a pullback to the broken line. On your way downwards the key levels to look for include, the supportive zone 109.20-109.00 and the lower support level 104.56. Right now I would recommend that you remain flat.

Trade recommendation

Remain flat.