Wait | 16 January 2023

Technical observation

On the chart above, price broke above a level 1.0786 and it is trading with an increasing bullish bias above the just broken line. I expect a loss of this upwards movement followed by a correction to the level I have mentioned above and a rejection at it to pick bullish positions with my take profit at 1.1064 and stop-loss at 1.0699. If there is a clear break above the level 1.1064 with a big green candle, I expect the value of this pair to ascend further after a correction and a rejection at the broken line, on the other hand, should there be a clear penetration below the level 1.0786, I anticipate a momentum towards the level 1.0489.

Trade recommendation

Remain flat.