With the movement of the current daily candle, we can see a significant decrease in the momentum of the large upward push that started last week, however, a decrease in momentum does not necessarily mean a reversal. Though, we can see a resistance area that is close to where the momentum is slowing down. My expectation is to see at the very least a pull back from the resistance and at most a retest of the lower 106.78 level, before breaking through to the upside. Short in the short term Long in the long term.
Trade closed: target reached:
Around 70 pip closure to the downside. Looking for an entry for a buying position soon.