Decline and Correction Potential | 31 March 2017

Daily chart: bears have broken middle Bollinger band (1.0695) but ADX shows passive trend, so it is not guaranteed that the pair will keep dropping in the same sharp manner. However, in general bears are aiming at lower Bollinger band (1.0482)

Н4: there are two intermediate support levels at 1.0663 and 1.0607. On the one hand, the pair is heavily oversold. On the other hand, ADX indicates that the price is trending strongly.

Н1: here we are observing bears weakening, which is confirmed by bullish oscillator convergence and four pinbars beyond lower Bollinger envelope. However, ADX still shows trending prices, so bears are likely to break 1.0663.

Expectations:

Core scenario - rollback to 1.0727 region followed by another drop to 1.0663.

Alternative scenario - direct drop to 1.0663.

Trading signals: consider selling from 1.0727 to 1.0663.