This week, the pair reached a monthly short-term target of 1.2797-1.2746. This allows us to consider the emergence of large demand and the formation of a reversal or correction model, which will allow obtaining more favorable prices for sale in the future.
Medium-term plan.
The pair is traded within the limits of the monthly short-term fault of August 1.2797-1.2746, which indicates the likely emergence of large demand. To make purchases, you will need to wait for the formation of the reversal model on the junior time frame. There is no need to hurry with purchases from current grades, since the downward impulse is a strong trend structure, which indicates a high probability of a monthly minimum update both in the intraday and medium term. The NCP 1/2 1.2731-1.2715 remains the main target of the downward movement.
To form an alternative model, you will need to absorb the fall of the current week and consolidate above the extreme. This will allow considering the formation of a deep correction model to the last fall of the pair.
Intraday plan.
The closest resistance at the end of this week is the NCP 1/4 1.2865-1.2857, which is located within the intraday move. Sales from this zone are beneficial, despite the fact that the pair has already tested the monthly short-term fault. The probability of reaching the NCP 1/2 1.2731-1.2715 still remains over 70%, which indicates the continuation of the fall. Violation of the downward model will occur if the pair can break through and consolidate above the NCP 1/2 1.2957-1.2941 in one of the next American sessions.
The daytime short-term fault is the daytime control zone. The zone formed by important data from the futures market, which change several times a year.
The weekly short-term fault is the weekly control zone. The zone formed by important futures market marks, which change several times a year.
The monthly short-term fault is the monthly control zone. The zone, which is a reflection of the average volatility over the past year.
