We are neutral | 26 September 2023

Technical observation

EUR declined below the key level 1.0632 with a big red candle and it is still trading with an increasing bearish bias. However I expect a loss of this downwards movement followed by a correction to the level I have mentioned above and my advice is, remain flat and wait for a second correction to the key level 1.0632 then sell a bounce at it with your take profit at 1.0489 and stop-loss at 1.0696. If the price declines below the level 1.0489, wait for a retracement and a bounce at this line before you continue short with this pair. As it is on the chart above, as long as the price is sustained below the level 1.0632, I can only recommend short positions.

Trade recommendation

Remain flat.