Potential pressure of sellers is growing at support zone 1.1616-1.1680. This region is a boundary of the lower Bollinger bands that will create premises for an upward reversal. Thus we can also note a key and forecast importance of 1.1616-1.1680 amid growth of ADX in favor of bears.
The lower Bollinger band was broken earlier and it’s one of the most important signals of the main tendency extension. Technical upward correction has reached PPZ 1.1680-1.1700, where sell-offs might resume (black arrow).
In case the price settles above 1.1700, a pullback may reach the middle Bollinger band (1.1731-1.1754), where the primary offer zone resides (red trajectory).
Low Friday’s trending activity of ADX indicator may suggest a flat market today. In case of a low volatility the euro will hover in the area of the middle Bollinger band (1.1680-1.1685). And in case of buoyancy, the boundaries of the Bollinnger bands might be tested (support 1.1647, resistance at 1.1712-1.1720).
Main scenario: Flat in the 1.1647-1.1720 range.
Alternative scenario: Break of support 1.1647 and decline to 1.1600.
Shorts from 1.1720 to 1.1647 and 1.1600.