Remain short towards 1.2072 | 09 May 2022

Technical observation

On the daily chart above price retraced to a resistance zone 1.2667-1.2634 then declined with a big red candle, my expectation is a continuation of this bearish momentum to the supportive level 1.2072. If you picked short positions within the zone indicated above, remain short with your take profit at 1.2072 and stop-loss at 1.2835. If price clearly penetrates below the level 1.2072, I expect a pullback to it and a bounce followed by a further momentum to the lower supportive level 1.1406. On the other hand, in case of a clear break above the zone 1.2667-1.2634, bullish movements of price can be expected after a correction to the broken zone.

Trade recommendation

Remain short with your take profit at 1.2072.