The major is being traded in the range of upper Bollinger bands keeping equal probability of either scenario with continuation of correction towards middle band (107.847) or second testing of upper Bollinger band (109.140). Such situation is the most uncomfortable for trading.
We note local trading range within Bollinger bands (108.411-108.824). Probability of exit beyond this range is low as ADX potential doesn’t correspond to break of strong levels.
On hourly chart currency pair is testing quite stiff resistance zone 108.579-108.630, which can trigger downward reversal in direction 108.369 (lower Bollinger band, watch the black arrow).
In case of break of 108.630 level bulls will probe the next strong level 108.824, where the’ll face sell-offs again (watch the red trajectory).
Main scenario: Decline from 108.579-108.630 to 108.369.
Alternative scenario: Break above 108.579-108.630, touch of 108.824 and following downward reversal.
Shorts from 108.579-108.630 and 108.824.