Analysis method - “Trend’s Potential”
August 13, 2018
Daily chart: Bears reached the lower Bollinger band (110.00) and, as we see, don’t ease pressure. This may lead to the break of lower Bollinger band and new phase of pair’s decline.
H4: Local target of probable upward correction is 110.86 (middle Bollinger band), from where we can consider new short-trades with the trend.
H1: The market tests the strong local resistance 110.46 at upper Bollinger band now, that can hold bulls from going higher.
Main scenario: Decline from the 110.46 handle towards 110.00 and lower.
Alternative scenario: Upward correction towards 110.86 and then new strong trending move to the downside.
Trading recommendations: Search for local sell signals at the 110.46 and 110.86 areas.