Expecting a rally to 1.3183 | 02 March 2022

Technical observation

On the 4 hour chart above, price retraced twice to the resistance zone it established at 1.3444-1.3434 and both times it could not break above the zone. As long as the value of this pair is contained below the zone I have mentioned above, I expect it to plummet towards the supportive level 1.3183 and at this level price could either break below with a big green candle, or a bounce at it followed by a retracement to the zone 1.3444-1.3434. If you are currently holding short positions with the pair above, remain in the trade with your take profit at 1.3183 and stop-loss at 1.3497. I can only recommend bullish positions above the zone 1.3444-1.3434.

Trade recommendation

Remain short with your take profit at 1.3183.