1.2200-1.2428 Range | 18 January 2017

Daily chart: ADX is corrective, the pair has faced resistance at 1.2454 (upper Bollinger band). It seems that the pair is going to drop towards 1.2092 (lower Bollinger band), moreover, in this region there is local bullish Over&Under pattern.

Н4: there is a valid resistance region of 1.2428-1.2454. Support level is localized at 1.2184 (middle Bollinger band). ADX/RSI move in opposite directions, that allows traders to sell from upper border of specified range.

Н1: the price is trapped between Bollinger envelopes (1.2200-1.2428). ADX is active but corrective. Scenarios are controversial as with EUR/USD.

Expectations:

Core scenario - touch in 1.2428-1.2454 and then decline towards 1.2200

Alternative scenario - decline towards 1.2200 and then shift up to finish with 1.2428 region

Solutions:

1. Consider selling from 1.2428 to 1.2200

2. Consider buying in 1.2200 region (in case of the alternative scenario).