A downward reversal around 1.1285

27 September 2016, EUR/USD

Daily chart: the pair is growing in the direction of the upper Bollinger band (1.1285) as ADX parameters are growing as well, so the upper envelope can be broken (see the red arrow). But as long as ADX has not reached the trend value, ​​we consider zone around 1.1285 (see the blue arrow) to serve as resistance.

Н4: here, we can see that growth comes amid bearish divergence oscillator, so the 1.1276-1.1285 resistance area can be very strong. However, to ADX it shows very high pressure, so the threat of a breakthrough on up there as well.

Н1: bearish divergence oscillator and, accordingly, the main expectation is the turn down. Support lines are 1.1244, 1.1213, 1.1202

Expectations: now we are waiting for touch of zone 1.1276-1.1285 and then a turn down to 1.1202

Solutions: sale with small Stop Order to 1.1202 from around 1.1285.

Aleksey Panasenko
FreshForex Analyst
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