Wait | 13 May 2022

Technical observation

On the hourly chart above price did not rise as I had anticipated, instead it declined with a big red candle and broke below the zone 129.55-129.45 then rallied further downwards to the supportive zone 127.91-127.79. Currently USD is trading with an increasing bullish bias slightly above the zone 127.91-127.79 and I expect a continuation of this upwards movement to the zone 129.55-129.45 followed by a rejection within it to pick short positions with my take profit at 127.91 and stop loss at 130.05. Should there be a clear break below the zone 127.91-127.79, I expect it to plummet further towards the key level 126.30, 124.93 or even lower to 123.46.

Trade recommendation

Wait for a correction to the zone 129.55-129.45 to sell USD.