Remain flat | 10 May 2022

Technical observation

USD broke above the level 125.60 a few weeks ago and since then it has been trading with an increasing bullish bias. However, this week price opened bearish and could continue to the lower side, the anticipated bearish movement is a correction to the level I have mentioned above and I expect a rejection of price at it to pick long positions with my take profit at 137.27 and stop-loss at 121.23. In case of a break above the level 137.27, I expect a further surge to the upper side, on the other hand if price is not contained above the level 125.60 but clearly breaks below it, I expect it to plummet towards the supportive level 113.73.

Trade recommendation

Remain neutral.