Daily chart:
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.
H4-chart:
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.
H1-chart:
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.
Conclusions:
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.
Trading recommendations:
Shorts from 1.1960 and 1.2000 in direction 1.1915.
