Consolidation

17.02.2021

Daily chart: the pair met a resistance at the 106.20 zone. The bullish momentum, with which there was an increase yesterday, remains very large, so the chances of continued growth in quotations also remain. Meanwhile, we need to take into account the characteristics of corrections, which very often occur after the instrument reaches the next maximum.

Н4: the probability of retesting zone 106.20 remains. Nevertheless, there is a sharp drop in the ADX trend potential, which went into correction against the upward price movement. Therefore, there is a high probability of a downward reversal from 106.20.

Н1: on the hourly chart, the pair is consolidating within the range limited by Bollinger Bands (105.68-106.20).

Conclusions: multidirectional movements in the range 105.68-106.20.
Trading decisions: selling from the area 106.20 to 105.68.