The euro is traded above the middle Bollinger band having broken yesterday the 1.1806-1.1848 zone. Thus, the bulls have good odds to retain mid-term pressure in direction of the upper boundary of the range (1.1963-1.2017). An optimum trajectory of the pair for traders would be a pullback to the middle band for retest that would allow them to get better entry points.
Tangible pressure from the ADX indicator is concentrated near the local resistance zone 1.1869-1.1889 suggesting its probable break by the buyers. Their next target will be the 1.1963-1.1980 zone (black arrow).
Should a break not occur today, the euro’s rate may pull back to the middle Bollinger band (1.1806, red trajectory).
Trending activity of the ADX indicator is observed on the hourly chart as well, therefore a major scenario today remains growth of the rate from current levels (black arrow). Key support zone is 1.1848-1.1859 (middle Bollinger band).
Main scenario: Extension of growth in direction 1.1963-1.1980.
Alternative scenario: Decline to 1.1806 followed by an upward reversal.
Longs from 1.1848-1.1859 to 1.1963-1.1980.