Development of upward correction of the major continues in direction of middle Bollinger band (1.2607). This resistance withholds market from movement to the upper Bollinger bands, where bulls might get the bonus of almost 170 pips of free space. Correspondingly we can see bustling sellers at 1.2607, who might want to guard downward structure of the market.
We note local resistance at the area of upper Bollinger band (1.2568). Given the growth of ADX indicator readings there is a high likelihood of further growth of the quotes in direction 1.2607 and higher (watch the red arrow).
While break of 1.2568 isn’t recorded, the due scenario will be flat in the 1.2475-1.2568 range.
Intraday horizontal range within Bollinger bands (1.2510-1.2560) is unlikely to be stable, since here we observe an active growth of ADX.
Main scenario: Growth towards 1.2607 and 1.2650.
Alternative scenario: Flat in the 1.2510-1.2560 range.
Longs in direction 1.2607 and 1.2650.