Quite strong reversal signals | 19 December 2016

Daily chart: here we have a very strong reversal signal - bearish inside bar along with oscillator divergence. All these allows us to sell in direction of 113.88 (middle Bollinger band)

Н4: upper Bollinger band (119.41) looks still untouched. If the price will eventually touch it, that would be a nice downward entry point. Intermediate support level is on middle Bollinger band (116.69)

Н1: we already saw lower Bollinger envelope breakout then a touch of middle band and inside bar. So we can expect decline from the current levels (see red arrow). However, remembering Н4 frame we can possibly expect a rise towards 119.41 (see blue arrow)

Expectations:

Core scenario - decline from the current levels towards 116.57.

Alternative scenario - sharp touch in 119.41 and as sharp starting decline and full reversal.

Solutions:

1. Sell from the current levels towards 116.57

2. Limited sell orders in 119.41.