Bears’ positional advantage

07.09.2021

Daily chart: The close of the day with a bearish inside bar from the upper Bollinger band is a substantial sales signal. The middle line (1.3771) seems to be the minimum target for a possible decline.

Н4: strong local support in the middle Bollinger band (1.3825-1.3838) keeps the pair within the bullish trend. Buyers can try again to attack in the 1.3885 direction, although this would contradict the picture on the daily timeframe.

Н1: falling hourly ADX potentially limits the volatility of the day within the Bollinger envelopes (1.3825-1.3856).

Conclusions:
The main scenario is flat in the range 1.3825-1.3856.
Alternative scenario is decline to 1.3771.
Trading decisions: sales from the 1.3856 zone to 1.3825 and 1.3771.