A continued decline after correction
17 November 2016, EUR/USD
Daily chart: the pair shows both signs of oversoldness and bullish convergence of the oscillator. However, trend activity of the key indicator ADX is against these potential reversal signals. It can lead to movement to 1.0600 (at any psychological support sellers will be tempted to take profit, and buyers - to avail from a rollback).
Н4: at this local frame, the pair is inside the lower Bollinger envelope (1.0651-1.0760). ADX is active, so buying is not recommended.
Н1: a flat corridor 1.0651-1.0760, plus the intermediate resistance is 1.0707 (middle Bollinger band). ADX is passive and corrective, so both level of resistance can be worked out.
Expectations: correction to levels 1.0707 and 1.0760 and then test of price downwards towards 1.0651 and 1.0600
Solutions: look for down entry points to 1.0707 or 1.0760 resistances. The goals are 1.0651 and 1.0600.
Aleksey PanasenkoAnalyst of «FreshForex» company
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