Continuation of the growth after correction

29.07.2021

Daily chart: testing of the upper Bollinger band (1.3956) is expected in the near future, which may take place against the background of high bullish pressure from the ADX indicator. This makes the probability of a breakdown above this resistance high.

Н4: the local trend potential of ADX is not too big yet, therefore, from the dynamic resistance 1.3956 (upper Bollinger line), a technical correction of the price downwards in the direction of 1.3896 and 1.3850 may occur.

Н1: the pair is actively growing within the day, but meanwhile, the overbought level is also increasing. Therefore, the most probable scenario for the day will be a downward reversal from the 1.3956 zone.

Conclusions:
The main scenario is a touch of the 1.3956 zone, then a decline to 1.3896.
An alternative scenario is a breakout of the 1.3956 zone and further growth to 1.4000.
Trading decisions:
1. Sales from 1.3956 to 1.3896.
2. Buying from the 1.3896 zone to 1.4000.