Euro is getting closer to mid-term resistance 1.0960 at the upper Bollinger band. Bollinger bands are in a stable horizontal position and potential of ADX indicator is low. Thus there are good chances for downward reversal, though bulls of course will have a big temptation to test the psychologically important level 1.1000 as well.
We note a local potential offer area 1.0960-1.0675, where we have a technical sell entry point in the context of probable execution of Over&Under pattern.
But here ADX trending dynamics in favor of bulls is in place, therefore there will be a probability of reaching the round level 1.1000 by the market.
On hourly chart we can observe bullish pressure of ADX indicator. It looks like we’ll get a touch of 1.1000 before downward reversal.
Main scenario: Growth to 1.10 and following downward reversal.
Alternative scenario: Downward reversal from 1.0960-1.0975 and development of correction in direction 1.0900.
Longs to 1.0960-1.0975 and 1.1000.
Shorts from 1.1000 to 1.0900.