Positional advantage of the bulls

28.07.2021

Daily chart: the pair actively continued its growth within the upper Bollinger envelope. The bulls will probably be able to refine the upper border of this range (1.3936) before the quotes go into correction.

Н4: the local upper Bollinger envelope was broken, after which the pair is consolidating within the bullish flag pattern. It is impossible to exclude a correction in the area of the middle Bollinger band (1.3800), where the most optimal zone for opening buy trades is now.

Н1: we also note dynamic support in the zone of the hourly middle Bollinger line (1.3860), where an obvious area for buyers is forming. But ADX activity may not be enough to rise to 1.3936 in today’s session.

Conclusions:
The main scenario is the continuation of accumulation in the 1.3860 zone before the growth in the direction of 1.3936.
An alternative scenario is a decline to 1.3800. Trading decisions: medium-term purchases from the 1.3860 and 1.3800 zones, counting on the movement to 1.3936.