Yesterday’s forecast on downward bounce of the price off resistance at the psychological level 1.2000 panned out. By the end of the session a bearish pinbar was formed being a sell signal that might trigger a new downward wave.
ADX indicator keeps the intrigue staying in a trending zone that may signify bulls are poised to a new attempt of settling above 1.2000-1.2009.
Thus it’s a key zone and sell-offs from this zone are highly likely. Bears’ target is the middle Bollinger band.
Locally the major continues to trade up. Thus we can’t rule out one more testing of 1.1992-1.2000 (upper Bollinger band). Nevertheless this area will remain attractive for limit sellers.
Also we need to note an intraday resistance at the middle Bollinger band (1.1956-1.1960), where we can get sell-offs during work off of the earlier broken lower Bollinger band. Intraday support for the pair is 1.1915-1.1917.
Main scenario: Decline from current levels in direction 1.1915-1.1917.
Alternative scenario: Growth to 1.1992-1.2000, then downward reversal in direction 1.1915-1.1917.
Shorts from 1.1960 and 1.2000 in direction 1.1915.