Correction Scenarios | 25 January 2017

Daily chart: ADX hasn't reached trend, so rollback to middle Bollinger band (1.0571) is likely before new up move. As the alternative, there may occur an attempt to break resistance level at 1.0783 (upper Bollinger band), although this attempt should be unsuccessful from the technical point of view.

Н4: two local supports are at 1.0706 and 1.0614 (middle and lower Bollinger bands). Both levels can show euro demand which would send the pair to 1.0795 (upper Bollinger band)

Н1: during the day horizontal trading within Bollinger bands range (1.0722-1.0765) is possible

Expectations:

Core scenario - flat in 1.0722-1.0765

Alternative scenario - decline towards 1.0614

Solutions:

1. Consider selling towards 1.0614 (in case of breakout of support level at 1.0700)

2. Consider buying in 1.0614 region