An important reversal signal (bearish inside bar) was formed from the round level 1.1800 and the upper Bollinger band yesterday. The major is hugely overbought therefore emerging of such signal is reasonable. If today’s attempt to overcome 1.1800 also fails, we can conclude that signal for decline is confirmed.
As we see bulls keep control over the situation: a very good upward bounce off 1.1700-1.1725 (middle Bollinger band) and also trending dynamics of ADX indicator.
It looks like 1.1800 level might get under pressure of buyers.
On hourly chart a consolidation before a new upward momentum is also supposedly over. Bulls are apparently poised to attack the upper Bollinger band at 1.1743 that again opens room to 1.1800.
Thus a reaction on the 1.1800 mark will provide the base for expectations of either an extension of upward rally to 1.1900 and 1.2000 or a start of downward correction.
Main scenario: Growth to 1.1800 and then steep downward reversal in direction 1.1700.
Alternative scenario: Break above 1.1800 and extension of growth in direction 1.1850 and 1.1900.
Longs to 1.1800 and perhaps 1.1850 and 1.1900.
Seeking probable sell signals at 1.1800.