Euro. Analysis of Friday's Close | 23 May 2016

Daily chart: a very active ADX looks ambiguous because of rebound of the pair from the lower Bollinger band. However, I am favor of the southern continuation (because of the well-shaped divergence of oscillator. On this background, Euro is attempting to grow. Also, we notice expansion of envelopes that can be a sign of continuation of the current trend)

Н1: a local northern accumulation and convergence. Upon that, ADX has not reached the trend zone yet, which enables a continued consolidation around the top envelope (1.1214-1.1229). Though we recognize that the range is too small for the euro.

Expectations: The main scenario - surge to 1.1250 and a return to 1.1197-1.1214

The alternative scenario - asluggish flat 1.1197-1.1229

Trading solutions: 1. Buy from 1.12 to 1.1250

2. Scalpers can just sell from 1.1250 to 1.12