Forex Technical Analysis: Trend potential – Wait for a retracement to (1.2240-1.2211)

EURUSD – Up

Wait for a retracement to (1.2240-1.2211)

Technical observation

Yesterday the pair on the daily chart above broke below a key support zone (1.2240-1.22110 with a big red candle; when price was corrected to the zone it could not be contained within the zone and as not rejected instead it penetrated below the zone resulting into the breakout. Right now it is rallying below the just broken zone and I expect a correction to the zone and a possible rejection of it within or around it for bearish movements of price towards 1.1935, I would advise you wait for a retracement and rejection of price around or within the zone then short EUR with your take profit at 1.1935 and stop loss around 1.2340.

Technical levels

Resistance levels

R1.1.2369

R2.1.2407

R3.1.25

Pivot

1.2318

Support levels

S1.1.2276

S2.1.2221

S3.1.2128

Trade signal

Wait for a correction to (1.2240-1.2211) to short EUR with your take profit at 1.1935 and stop loss around 1.2340.

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