The euro, in synchrony with the british pound, is forming a “bullish inside bar” pattern on a daily chart. Support for this scenario is provided by the strong support-zone 1.2109-1.2120.
Getting such a close the bulls will have good odds for recovery of the pair in direction 1.2290 and 1.2236 (upper Bollinger band).
We note that the local lower Bollinger band remains much lower than the current price being at 1.2109. This fact keeps positioning advantage for sellers making possible one more downward wave in direction of this target from the middle Bollinger band (1.2214-1.2221).
Growth of the euro is interpreted by the ADX indicator as correction that also limits potential recovery of the pair by the upper Bollinger band (1.2172).
Main scenario: Growth to 1.2172, then downward reversal to 1.2136 with aim at 1.2109.
Alternative scenario: Higher correction to 1.2214-1.2221, steep downward reversal afterwards.
Shorts from 1.2172 and 1.2214-1.2221.