On Monday bulls might take a shot | 26 December 2016

26 December 2016, EUR/USD

Daily chart: the pair closed previous week with bullish inside bar, that gives buyers hope to touch 1.0569 (middle Bollinger band). From there bears might force the pair to move towards lower band (1.0342).

If this level (1.0569) will be broken too, considering oscillator convergence there might be a potential for a full upward reversal to 1.0795 (upper Bollinger band).

On Monday bulls might take a shot

Н4: aggressive trend ADX votes for a rise toward 1.0569. Key barrier is upper Bollinger band (1.0476), if it will be broken, there would be even more intensive growth.

On Monday bulls might take a shot

Н1: locally ADX is not ready for an immediate shift, so it's possible that, at first, there will be a breakout of upper envelope (1.0460) and later a rollback towards 1.0447 (middle band), and, at last, there will be a major up movement.

On Monday bulls might take a shot

Expectations:

Core scenario - a shift towards 1.0476, and later a rollback towards 1.0447 and new intensive growth to 1.0569 (this target level might be touched on the next day)

Alternative scenario - direct rise towards 1.0569

Solutions: buy around 1.0569 (the best entry point is 1.0447)

Aleksey Panasenko
FreshForex Analyst
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