We are bearish | 09 May 2022

Technical observation

EUR retraced to a resistance zone 1.0589-1.0581 but could not break above it, instead, it bounced within the same zone and since then it has been trading with an increasing bearish bias. I expect a continuation of this downwards movement to the supportive level 1.0484 followed by either a clear breakout below it with a big red candle, or a rejection at it followed by another correction to the zone I mentioned earlier. If you are currently holding short positions with the pair above, remain short and pick your profits at the level 1.0484. I can only recommend long positions above the resistance zone 1.0589-1.0581.

Trade recommendation

Remain short with your take profit at 1.0484.