We note strong bearish readings of ADX indicator suggesting high probability of continuation of the quotes’ decline in direction of support level 6.9229.
Utmost zone for correction is middle Bollinger band (7.0221 mark) and it’s the most optimal area for opening new short-trades.
Support, which provides relative stability to the pair is 6.9887 (lower Bollinger band).
On hourly chart we also observe a tendency for consolidation of the market inside Bollinger bands (support is 6.9865, resistance is 7.0132-7.0221).
ADX is in a weak zone, therefore flat scenario is the main expectation from today’s session.
Main scenario: Flat in the 6.9865-7.0221 range.
Alternative scenario: Continuation of quotes’ decline in direction 6.9229.
Shorts from 7.0132-7.0221 to 6.9865 and 6.9229.