New lows and an upward reversal
21 September 2016, EUR/USD
Daily chart: drop in the direction of the lower Bollinger band (1.1110) as ADX is moving up. But it is far from the active trend zone, so a break below is not expected.
Н4: support is at 1.1113 (lower Bollinger band). ADX is growing, but has not reached trend levels yet. The oscillator has signs of convergence, so there is quite a high probability of bounce and upward reversal.
Н1: bullish convergence, but ADX is under pressure, so we are waiting for new lows and then an upward reversal.
The main scenario - drop to 1.1110-1.1113 followed by an upward reversal to 1.1157
The alternative scenario - prick to the 10th figure to remove stop orders of players and then an upward reversal. Uner this scenario, choice of correct levels for stop orders is very problematic
Trading solutions: look for Buy signal in the areas provided in scenarios and then enter up.
Aleksey PanasenkoAnalyst of «FreshForex» company
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