This week the pair reached the weekly short-term target of 1.3368-1.3348, which allowed execution of the main downward model. Also, a return pattern was implemented to the monthly KZ of September with the probability of 90%.
Medium-term plan.
The return to the monthly KZ of September opens the possibility to fix the short positions which opened last week. The emergence of large demand during the short-term test at the area of 1.3368-1.3348 can serve as a starting point for the formation of an upward model to reach the target of the maximum level of September. The pair rose in September settling the price above 1.3348 which will speak of continuing the medium-term upward momentum, with the current monthly high can become the first target.
If the closure of today's US session occurs below the level of 1.3348, an alternative model will be developed. This will open the way for a further decline of the pair.
Intraday plan.
Yesterday the formation of the reversal pattern occurred through the breakdown of the NKZ 1/4 1.3421-1.3414. This suggests a high probability of growth to the next resistance located within the NCC 1/2 of 1.3500-1.3486. This zone is located within the daily average, which may allow the models to be realized today. There is a possibility for a further growth if today's US session closes above 1.3500. This will open up opportunities for medium-term purchases in order to retest the September maximum.
The daytime CP is the daytime control zone. The zone formed by important data from the futures market, which change several times a year.
The weekly CP is the weekly control zone. The zone formed by the important futures market, which changes several times a year.
The monthly CP is the monthly control zone. The zone is a reflection of the average volatility over the past year.
