Key demand area for the euro remains the middle Bollinger band (1.1796-1.1800), which the market tests periodically confirming probable bullish accumulation. At the same time ADX readings so far remain on a flat level suggesting low probability of strong upward movement.
Extremely low activity of ADX indicator also suggests a flat forecast on the asset. Trading range probably won’t exceed the scope of Bollinger bands (1.1823-1.1896).
We note a key resistance zone at the middle Bollinger band (1.1851-1.1859). Closing above or below this zone will reveal players’ intention for either growth in direction 1.1820-1.1896 (black arrow) or pullback of the quotes in direction 1.1820-1.1823 (red arrow). Overall any of these scenarios will match the flat scenario on senior time-frames.
Main scenario: Extension of growth in direction 1.1890-1.1896.
Alternative scenario: Decline from 1.1851-1.1859 to 1.1820-1.1823.
- Above 1.1859 - longs to 1.890