Bullish traps are possible | 08 December 2016

Daily chart: yesterday the pair consolidation continued as a signal of rapid growth potential. Narrowing of Bollinger bands also continued and now the inside range is 1.0489 - 1.0889. Downward entry points have trending nature, so it's the most reasonable mid-term strategy.

Н4: locally there remains bullish advantage, the pair moves towards resistance levels 1.0826 and, perhaps, 1.0889.

Н1: localized resistance level is 1.0769 (upper Bollinger band), localized support level is 1.0734 (middle band).

Expectations:

Core scenario - at first, rollback to 1.0734 and then rapid upward shift towards 1.0826

Alternative scenario - direct growth towards 1.0826 and, perhaps, to 1.0889.

Solutions:

1. Buy in the range of 1.0734 - 1.0826 and possibly up to 1.0889.

2. Limit orders to sell starting from 1.0889.