05 October 2016, EUR/USD
Daily chart: a horizontal flat channel 1.1158 - 1.1275 (the range of Bollinger envelopes). Bollinger bands got much more narrow and that brings us closer to a new medium-term trend.
Н4: a better shaped channel 1.1168 - 1.1250 is in the ascending phase of its movement. At the same time, ADX parameters are very active, which could lead to a breakthrough of 1.1275
Н1: ADX is correcting, so a breakthrough above 1.1225 may not happen. Support is at the middle Bollinger band (1.1186), although the price may touch the lower support at 1.1158 (lower Bollinger band)
The main scenario - touch of zone 1.1225 and then the downward correction to 1.1186 and maybe toward 1.1158
The alternative scenario - surge to 1.1250
Solutions: consider buying options on downward pullbacks (around 1.1158 - 1.1186) and sales from around 1.1250.
