Potential is still being accumulated | 05 October 2016
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.
The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
