Technical Observation:
Previously, USD rose above the short term resistance zone 111.60-111.38 but immediately dived below it again. On the 4 hour chart above, this is a possible false breakout and unless there’s a clean breakout and a clean retracement to this zone, I expect the price to plunge down to 109.72. My advice, unless there’s a clear bullish breach above the zone marked above, you should consider a short position with SL above the previous day’s highest high 111.77 and TP at 109.18.
Technical levels:
Resistance levels
R1: 111.63
R2: 112.16
R3: 113.07
Pivot Point
111.25
Support Levels
S1: 109.43
S2: 110.34
S3: 110.72
Trade Signal
Short USD towards 109.18
Origin: FreshForex
