we are flat | 07 June 2022

Technical observation

On the weekly chart above price is trading above the supportive level 1.0405 with an increasing bearish bias, however, I expect a loss of this downwards movement followed by a correction to the zone it established at 1.1541-1.1495 and a bounce within it to pick short positions with my take profit at 1.0405 and stop-loss at 1.1878. If price breaks below the level 1.0405 with a big red candle, I expect it to descend further after a correction to the broken line, on the other hand should there be a clear break above the zone 1.1541-1.1495; I expect a momentum towards the resistance 1.2540 or even higher to the key level 1.3951.

Trade recommendation

Remain neutral.