Searching for the bottom
18 November 2016, EUR/USD
Daily chart: the euro market is in a deep downward fall and the most unpleasant, what we can do here is searching for its bottom. We have already seen the number of bars outside Bollinger envelopes that could be a corrective signal. But such indirect signals not enough to expect a reversal. ADX is very active and though the pair oversold, it could still move the levels of support lower.
Н4: local resistance is at the middle Bollinger band (1.0704), support is at 1.0585 (lower band)
Н1: a little better shaped resistance is at 1.0638 (middle Bollinger band) and dynamic support from the lower band is lower than on H4 and it is 1.0549.
The main scenario - decline to 1.0549 and then start of correction to 1.0638
The alternative scenario - a breakthrough of 1.05
Solutions: sales from around 1.0638 to 1.0549
Analyst of «FreshForex» company
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