The downward phase of the flat

28 September 2016, EUR/USD

Daily chart: horizontal flat 1.1125 - 1.1285 within Bollinger envelopes. ADX is far from the trend zone, so main expectation of today is a continuation of this trend (with an inclination to its downward phase) )

Н4: at this local frame, support is at 1.1188 (lower Bollinger band). ADX is insufficient to continue the downward movement.

Н1: a purely bearish ADX with tight support area 1.1188-1.1193. Clearly, the attack will be based on the pattern "breakthrough of the lower envelope, a return to the middle band (1.1217) -the main phase of decline towards 1.1125"

The main scenario - prick of level of 1.1188 down, then a return to 1.1217 and beginning of a new decline to 1.1125

The alternative scenario - a direct fall to 1.1125

Solutions: sell to 1.1125 (the best possible way - from zone 1.1217 under the basic scenario)

Aleksey Panasenko
FreshForex Analyst
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