Daily chart:
After testing of upper Bollinger band at 108.67 we can observe a tangible upward bounce, which has the tone of bearish inside bar forming (a figure of downward reversal). Thus we can consider mid-term shorts in direction 106.73 (lower Bollinger bands).
H4-chart:
Local downward technical correction can meet strong support at the area of middle Bollinger band (107.68-107.84). Further decline of the quotes might be considered only after break of this zone (watch the red arrow).
H1-chart:
We note intraday support at 108.20 (lower Bollinger band). It’s a key level for execution of downward scenario.
Expectations:
Main scenario: Decline under 108.20 in direction 107.68-107.84 with aim at 107.01.
Alternative scenario: Flat in the 108.20-108.55 range.
Trading recommendations:
Shorts towards 107.68.
