Sales from 1.3804 zone

08.09.2021

Daily chart: As predicted, sellers have successfully broken down the bearish inside bar, which provides the pair with potential for further declines towards the lower Bollinger band (1.3638). For this, it is necessary to consolidate below the middle line (1.3763), which may take time, inasmuch as ADX is outside the trend zone.

Н4: locally the pair is consolidating between support at 1.3763 and resistance at 1.3830 (middle Bollinger band). Here ADX is in close proximity to the strong zone, so the continuation of the decline will be possible at any time.

Н1: the hourly lower Bollinger envelope has been broken, which is also a direct signal for the continuation of the downward wave. The optimal zone for possible sell trades is the middle Bollinger band (1.3804).

Conclusions: a rollback to 1.3804, then a decline in the direction of 1.3763 and 1.3700.
Trading decisions: sales from the 1.3804 zone to 1.3763 and 1.3700.