We are neutral. | 12 August 2022

Technical observation

This week the value of the pair on the weekly chart above opened bullish and since then it has been trading with an increasing bullish bias and I expect it to close the same. Next week I expect a further surge to the upper side towards the resistance zone 1.0742-1.0696 and I would recommend that you remain neutral and wait for a correction to this zone to pick short positions with your take profit at 0.9955. If price clearly breaks below the level 0.9955 a surge to the lower side is expected after a correction to the broken line, on the other hand, I can only recommend picking bullish positions in case of a clear break above the zone 1.0742-1.0696.

Trade recommendation

Remain neutral.