Premarket view on the euro. Analysis of Friday's close
21 December 2015, EUR/USD
Daily chart: the pair shows a tendency to rebound from the middle Bollinger band (1.0787), which makes movement to the top line (1.1091) likely. At the same time, ADX is weak, so that the second scenario is flat.
H4: growing, but still weak ADX. Resistance 1.0887 (the middle Bollinger band) may be under load (to move to 1.0998), but more likely that we will see another pullback down to the bottom band (1.0787), where it is a promising area for purchases .
Н1: vague activity of ADX on very narrow envelopes. This can be correlated with any direction, which adds difficulty in making trading decisions. Support is located at 1.0812. If it will be formed by Long signals - buy to 1.0887 (with an eye on 1.0998). If it is broken - bears continue to pressure down, which will make the price to test support 1.0787.
Expectations: The main scenario - drop to 1.0787-1.0812 area and then rise to 1.0887 with an eye to 1.0998.
The alternative scenario - drop to 1.0787.
Trading solutions: purchase when we have long signals around 1.0812 zone
Aleksey PanasenkoAnalyst of «FreshForex» company
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