Bullish pinbar formed from the middle Bollinger band yesterday may become a trigger for a new upward wave. The closest very strong resistance area on the way of growth is 109.51-110.00. And in case it’s broken, the major would recover by 200-250 pips in direction 111.75-112.23.
Bulls stalled at the local resistance 108.55 now (middle Bollinger band). Break of this level will open buyers the room of upper Bollinger bands (target is 110.25 at the upper band).
Meanwhile there still will be a likelihood of downward pullback in direction of the lower band (106.95, black arrow).
On hourly chart we can notice one more additional buy signal - break of the upper Bollinger band. Such setup allows considering long trades from the middle band (108.10).
Let’s note low local potential of ADX indicator that can supplant reaching of tangible targets beyond this day.
So, we expect testing of 108.10 and then growth to 108.55, 109.00, 110.25 (extraday).
Longs from 108.10 to 108.55, 109.00, 110.25.