Forex Technical Analysis: Trend potential – Short EUR/USD around 1.2235-1.2192

EURUSD – Up

Short EUR/USD around 1.2235-1.2192

Technical observation

Recently, EUR/USD broke down below a support zone 1.2235-1.2192 with a big red candle, price then rallied down and is currently pulling back to the broken zone. I don’t expect a breach above the it but a rejection of price within it for bearish movement of price towards the support line 1.1739 and a breakout below it for a further decline in price towards 1.1387.I would advise you wait for the pull back to 1.2235-1.2192 then short EUR within it with your first take profit at 1. 1739and the next at 1.1387 and your stop loss around 1.2557.Long positions can only be advised in case of a clear breakout above 1.2235-1.2192.

Technical levels

Resistance levels

R1.1.2006

R2.1.207

R3.1.2226

Pivot

1.1914

Support levels

S1.1.185

S2.1.1758

S3.1.1602

Trade signal

Wait for a correction to 1.2235-1.2192 then short EUR within it with your take profit at 1.1739 and stop loss around 1.2557.

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