Accumulation before further decline

20.08.2021

Daily chart: ADX pressure in favor of a further decline in quotes remains. The nearest strong support will be found in the lower Bollinger band (1.1651), but the probability of a breakout of this zone will also be high.

Н4: local trend dynamics is not at the trend level yet, which limits potential volatility within the lower Bollinger envelope (1.1651-1.1707).

Н1: Bollinger bands are in the horizontal plane, which will provide a sideways trend within today’s session. Trading range 1.1670-1.1697.

Conclusions:
The main scenario is flat in the range 1.1670-1.1697.
Alternative scenario – decline to 1.1651.
Trading decisions:
1. Short-term – trading in the range 1.1670-1.1691.
2. Sales from the 1.1697 zone to 1.1670 and 1.1651.