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A strong upward correction is expected

23 October 2015, EUR/USD

The daily chart: yesterday the price brutally has reached the bottom Bollinger band (1.1093). Envelopes are stable, so the price may back in the direction of the middle band (1.1273). However, we must understand that a breakthrough of bears down is likely. In this case, the target for the euro will be arounf 1.0850.

Н4: Four bars outside of the envelope a very strong reversal karma. Possible goal of correction - down to 1.1308 (middle Bollinger band)

Н1: Here we see that the depth of this decline could reach 1.1045 (lower Bollinger band). Resistance - 1.1242 (Bollinger midline).

Expectations: The main scenario - decline to 1.1045 and then upward correction towards 1.1242. The alternative scenario is the upward correction from current levels.

solutions: 1) Bears can try to modify the target 1.1045. 2) From the zone of 1.1045 bulls can take over correction targeting 1.1245

Aleksey Panasenko
Analyst of «FreshForex» company
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