The major remains bracketed in the range between middle Bollinger band (108.40) and pivot-zone 110.00-110.25. Given the weak ADX readings we can suppose that today’s trading session will pass within current boundaries.
We note a strong local dynamic support at 108.40 (middle Bollinger band). Downward phase of the movement has corrective nature, therefore upward bounce is very likely.
In this case bulls’ target would be at 109.64-110.25.
Local lower Bollinger band was broken, therefore bears can sell out the asset from the middle band (109.02). Thus we have a negative intraday forecast with an actual positive mid-term scenario.
So, we expect touch of 109.02 and then decline in direction 108.40-108.45.
Shorts from 109.02 to 108.40-108.45.
Longs from 108.40-108.45 to 109.02.