Two scenarios for Today | 23 January 2017

Daily chart: bulls prevented correction last week. However, their pressure on resistance level at 1.2431 (upper Bollinger band) is not supported by needed ADX pressure. As a rule, this indicates inability to break the level. That's why we are expecting start of downward rollback from 1.2431.

Н4: just more localized resistance level is at 1.2414 (upper Bollinger band). ADX is growing but is still far from trend, so resistance in 1.2414-1.2431 region may as well throw the price back to 1.2335 or 1.2262.

Н1: local ADX shows the signs of trend, so 1.2414-1.2431 region can get under pressure and we should consider two possible scenarios: either breakout or bounce

Expectations:

Core scenario - touching 1.2414-1.2431 and then decline towards 1.2235.

Alternative scenario - upside breakout of 1.2431 and later shift to 1.2500.

Solutions:

1. Consider selling from 1.2414-1.2431 to 1.2335

2. Consider buying from 1.2335 (in case of signals to buy)