Corrective potential

22.06.2021

Daily chart: a bullish inside bar formed in such a place may well become a “bull trap”: the lower Bollinger envelope has been broken, so the entire potential for a price decline may not have been exhausted.

Н4: the pair is locally very oversold, and the RSI oscillator has a bullish convergence with the price chart. Therefore, it is impossible to exclude the development of a correctional wave to the upper Bollinger band (1.1964).

Н1: a very narrow intraday range within the Bollinger envelopes (1.1893-1.1924) may well be relevant against the background of a decline in the trend potential from the ADX indicator.

Conclusions:
The main scenario is flat in the range 1.1893-1.1924.
An alternative scenario – growth to 1.1964.
Trading decisions:
1. Buying from the 1.1893 zone to 1.1924 and 1.1964.
2. Search for local buy signals in zones 1.1924 and 1.1964.