Daily chart: bulls have been active during the whole session and now have a chance to break middle Bollinger band (1.0712). ADX/RSI indicates that we may see new drop from 1.0712 towards 1.0550 (lower Bollinger band, see blue arrow).
However, as an alternative there may be a rise towards 1.0871 (upper Bollinger band, see red arrow), this scenario can occur after upside breakout of 1.0712.
Н4: upper Bollinger envelope breakout is a nice signal of rise. However, rise may occur after rollback towards middle Bollinger band (1.0611), as ADX parameters are far from trending.
Н1: the same situation here – upper Bollinger envelope breakout and weak trend ADX. We will expect rollback to 1.0611 followed by upside move.
Core scenario – downside rollback to 1.0611 followed by rise to 1.0712
Alternative scenario – direct rise to 1.0712.
Trading signals: consider buying from 1.0611 to 1.0712
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