Downward Correction Preparation | 20 مارس 2017

Daily chart: Friday saw start of downward correction, which may reach middle Bollinger band (1.0614)

Н4: distinct oscillator divergence indicates weakening of bullish front line. Upper Bollinger band (1.0814) hasn't been touched yet leaving chance for another shift to the upside. In general, however, the pair is ready for correction towards 1.0693 and 1.0571 (middle and lower Bollinger band). Considering weak trend ADX, impulsive and sharp drop is not likely to happen.

Н1: technically the pair preserved upward structure but it looks like a preparation for reversal to the downside. Support level is at 1.0725 (lower Bollinger band), resistance is at 1.0754 (middle Bollinger band). More intensive drop is likely after the pair sinks bellow 1.0725

Expectations:

Core scenario - drop to 1.0693 followed by rollback to 1.0750. Then we may expect big drop towards 1.0614

Alternative scenario - direct drop to 1.0614.

Solutions: consider selling to 1.0614 (the best entry point is 1.0750)