Currency pair approaches to strong dynamic resistance 4.1988 (upper Bollinger band). Break of this level is unlikely as ADX indicator resides in a very weak area. Thus we can expect a start of new downward wave in direction of lower Bollinger band 4.1734.
We confirm the boundaries of local sideways trend within Bollinger bands (4.1734-4.1988). Thus here we also come to a conclusion about going short shortly.
Full absence of any activity from ADX is also a sign of lack of trending potential on the buyers’ side. We expect testing of 4.1988 and start to the downside in direction 4.1844.
Touch of 4.1988 and then decline in direction 4.1844.
Shorts from 4.1988 to 4.1844.