The downward movement of the previous week allowed us to talk about the formation of a bearish medium-term model, where the new target is the NCP 1/2 1.3196-1.3182. The absorption of growth three weeks ago will allow to form a medium-term accumulation zone.
Medium-term plan.
Today, there was a breakdown of the weekly fault 1.3368-1.3340. In the event of closing today's trading below the specified zone, the next target will be the NCP 1/2 1.3196-1.3182, where further fixations of short positions will be required. Any growth at the beginning of this week will be corrective, which will allow you to get more profitable prices for the sale of the instrument. Until the October extremes were formed, it is worthwhile to focus on the monthly short-term fault of September, one of which intersects with the above-mentioned NCP 1/2.
An alternative model will develop if the pair can absorb today's growth, and the closing of the American session will occur above the level of 1.3368. This will provide an opportunity to consider both correctional and reversal models.
Intraday plan.
Today's breakdown of the weekly short-term fault 1.3368-1.3340 can serve as a starting point for the implementation of the next stage of the downward movement. If today's US session is closed below the level of 1.3340, the next target will be the NCP 1/2 1.3196-1.3182. This indicates the coincidence of the medium and intraday models. Any growth at the beginning of this week is corrective, so it is necessary to build younger control zones from the local minimum of the week and to look for points of the sale of the instrument both within the day and in the medium term.
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.
