This week, the pair is trading below the monthly short-term fault of September 0.8884-0.8841. This indicates a high probability of forming an upward correction model, the purpose of which will be the indicated control zone.
Medium-term plan.
Movement outside the monthly short-term outlook indicates an increase in the likelihood of a movement in the direction of strengthening the Euro. According to statistics, this probability is 90% at a distance of several years. For this reason, it is better to suspend the search for sales. The search for profitable purchase prices must be made only after the formation of the reversal model on the junior timeframe. The goal of the decline so far remains a weekly short-term fault of 0.8692-0.8673. In the case of the formation of an ascending model, the main goal will be a weekly short-term fault of 0.8964-0.8945.
An alternative model will be developed if the weekly minimum is updated. This will allow to consider the decline to the weekly short-term fault of 0.8692-0.8673, where it will be possible to obtain favorable prices for the purchase of the instrument.
Intraday plan.
To date, the pair is in the stage of forming a strong medium-term momentum, which indicates the need to take this into account when searching for favorable prices for buying or selling. Exceeding the limits of the monthly fault, as described above, introduces adjustments. The determining resistance is NCP 1/2 0.8858-0.8849. While the pair is trading below this zone, the bearish momentum will continue. To disrupt the downward structure, it will require consolidation above the level of 0.8858 in one of the American sessions.
The daily 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.
