Bollinger bands are one of the most popular technical indicators for traders in any financial market - stocks, bonds or foreign exchange (FX). Many traders use them primarily to determine overbought and oversold levels, selling when price touches the upper Bollinger band and buying when it hits the lower Bollinger band. In range-bound markets, this technique works well, as prices travel between the two bands like balls bouncing off the walls of a racquetball court.
Currently, EUR/USD hugging upper Bollinger Band which technically considered as overbought level. Trend is still upward. MACD also confirms daily overbought level for this pair.
We will be watching how it opens next week. We think there are possibility of pullback from this overbought level. If that happens, then, EURUSD has a chance to come down to the mid level of Bollinger Band which is 1.2972.
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