Wait for a pullback to sell USD | 01 April 2022

Technical observation

The pair on the chart above is trading with an increasing bullish bias below the resistance zone 122.60-122.40, this upwards movement is a second retracement to the zone mentioned above and I expect a loss of it within the same zone followed by a momentum to the lower side. My advice, remain flat and wait for a pullback to the zone 122.60-122.40 then pick short positions within it with your take profit a 119.05 and stop loss at 123.72. In case of a clear breakout below the level 119.05 with a big red candle, I expect a further surge to the lower supportive level 116.18. As long as USD I sustained below the zone I have mentioned above I can only recommend short positions.

Trade recommendation

Remain neutral.