Try to enter down from resistance level 1.0720 | 23 January 2017

23 January 2017, EUR/USD

Daily chart: we are observing momentum of the high but there is not enough force to break upper Bollinger envelope (resistance level of 1.0720). This allows us to count on rollback to the downside from 1.0720 region towards middle Bollinger band (1.0540), here one may look for signals to buy again.

Try to enter down from resistance level 1.0720

Н4: here we also see weak ADX, so scenario of downward rollback from 1.0720 might be considered as a core one. Supports are localized at 1.0671 and 1.0615 (middle and lower Bollinger band)

Try to enter down from resistance level 1.0720

Н1: there is local trending ADX, so bulls may take their advantage, firstly by continuing rally with increasing new highs and then by plunging the pair into correction towards 1.0671.

Try to enter down from resistance level 1.0720

Expectations:

Core scenario - upside breakout of 1.0720 and then rapid rollback to the downside towards 1.0671

Alternative scenario - decline after touching 1.0720. The target is 1.0629

Solutions: selling from 1.0720 to 1.0671 and 1.0629

analytic
FreshForex Analyst
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