Euro is poised for a drop to the area of lower Bollinger band (1.1137), however such scenario most likely will be postponed till Thursday when the US will publish their Non-Farm Payrolls. ADX indicator so far continues to correct also suggesting probable absence of trending potential of today’s session.
We note a strong local support at 1.1200-1.1214 (lower Bollinger band). ADX here is also falling, therefore there is a probability of upward bounce in direction 1.1263-1.1270. And it’s the preferable point for going short reckoning on mid-term decline.
Intraday state of Bollinger bands and ADX also suggests probable upward bounce off support 1.1190-1.1200 to the middle Bollinger band (1.1234-1.1245).
Main scenario: Decline to 1.1190-1.1200 followed by upward pullback to 1.1234-1.1245.
Alternative scenario: In case of break of support 1.1190 we expect further development of downward wave to 1.1100.
Shorts to 1.1190-1.1200.
Short-term longs from 1.1190-1.1200 to 1.1234-1.1245.
New shorts from 1.1234-1.1245.