Upside signal counter local correction | 18 January 2017

18 January 2017, EUR/USD

Daily chart: we are observing break of upper Bollinger envelope, that is a strong up move signal. However, the break occurred while ADX was very weak, so here we have a possibility for preliminary correction to the downside towards middle Bollinger band (1.0528)

Upside signal counter local correction

Н4: there is technical correction to the downside. Support level is more localized than on day chart: it is at 1.0644 (middle Bollinger band). Resistance level is at 1.0718 (upper band).

Upside signal counter local correction

Н1: there is another support level in 1.0676 region (lower Bollinger band). In total, today scenarios are controversial. Both shift up from current levels and drop in context of rollback are possible.

Upside signal counter local correction

Expectations:

Core scenario - touch in 1.0644-1.0676 region and later shift to the upside aiming to break 1.0718

Alternative scenario - declining towards 1.0528 flat

Solutions: consider looking for upward entry points. Bearing in mind the alternative scenario, one should be cautious.

Aleksey Panasenko
FreshForex Analyst
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