Limited bullish potential

18.03.2021

Daily chart: a trying to enter the upper Bollinger envelope is taking place against the background of a weak ADX, so the bulls may still have problems with making this task. But, if they succeed, they will get space to the upper Bollinger band (1.4108).

Н4: strong local resistance in the 1.3974-1.3990 zone on the upper Bollinger band, probably, will not let buyers go higher, as evidenced by the falling ADX. Therefore, we are waiting for the moving of the market into a downward phase to 1.3904.

Н1: strong intraday support in the zone 1.3941-1.3951 (middle Bollinger band) is quite capable to provoke the development of an upward bull to 1.4010. It is more correct to consider this level as the same zone with the area of 1.3974-1.3990.

Conclusions: growth to 1.3990-1.4010, then downward reversal to 1.3904.
Trading decisions: sales from the 1.3990-1.4010 zone to 1.3904.