Search for Sell options on a possible pullback to 1.1272

19 May 2016, EUR/USD

Daily chart: the situation is not clear. On the one hand, there are signs of an upward rebound from the support 1.1193 (the lower Bollinger band). On the other hand, the price may break down and continue falling to 1.10. ADX favors bears and at the same time is passive (which may indicate a lack of capacity to break through the bottom Bollinger envelope )

Н4: the fourhours lower Bollinger envelope is being broken, which is the southernmost signal. As part ofsuch a scenario, correction to the middle band (1.1307) seems to be appropriate.

Н1: bullish convergence of the oscillator and three bars out of the envelope - a sign of correction. Resistance area is around 1.1272 (middle Bollinger band).

Expectations: The main scenario - an upward rollback to 1.1272 and start of a new descending wave with an eye on 1.10

The alternative scenario - a direct drop without pullbacks

Trading solutions: look for Sell options around 1.1272 zone to 1.10

Aleksey Panasenko
FreshForex Analyst
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