The key resistance area 1.1320-1.1329

27 April 2016, EUR/USD

Daily chart: growth was boosted by a breakthrough of bullish inside bar, albeit a northern momentum is well shaped, there is not much enthusiasm. This may lead to another pullback to bottom Bollinger band (1.1219). At the local levels, we may notice development of downstream structures (sequential drop of local peaks and lows), so that all may in fact turn out to be a bull trap.

Н4: So far, the flat corridor inside Bollinger envelope (1.1219-1.1329) is relevant, but ADX is very close to trend zone. If resistance 1.1329 is broken, bulls will have an additional point for growth (see the red arrow).

Н1: a local ascending flat in the range 1.1272-1.1320)

Expectations: The main scenario - reach of 1.1320-11329 and then start of a downward rollback towards 1.1219

The alternative scenario - breakthrough 1.1329 and start of growth to 1.14

Trading solutions: we are considering sale from 1.1320-1.1329 to 1.1219. In case of breaking 1.1329, we should be looking for upward entry points on pullbacks

Aleksey Panasenko
FreshForex Analyst
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