So, the upper Bollinger band was successfully broken yesterday and now euro resides at new highs. Extension of uptrend is highly likely that is indicated by active bullish ADX. The closest target is 1.1600.
We have somewhat overbought conditions that may let market to perform a short-term pullback in direction of the middle Bollinger band (1.1455-1.1470). But it’s unsafe to trade using such correction as buyers can regain control at any moment and head toward 1.1600.
Strong intraday support for euro resides at the dynamic level 1.1515 (middle Bollinger band). Let’s note that the upper Bollinger band moved to 1.1580 pointing to today’s actual target of growth. Thus we can get a development of upward wave to this target right from the current levels (black arrow).
In case the price moves under 1.1515, we would expect a deeper correction to 1.1455 (blue trajectory).
Main scenario: Touch of 1.1515 and then growth to 1.1580-1.1600.
Alternative scenario: Decline to 1.1455.
Longs from 1.1515 and 1.1455. Target is 1.1580-1.1600.