Last week, the formation of the medium-term accumulation zone continued. The pair traded in the November price range, which allows considering purchases from the lower border of the flat and a partial fixation during the test of control zones.
Medium-term plan.
The nearest resistance is the weekly control zone (NKZ) of 0.8900-0.8881. The test of this zone requires closing most of the purchases and consider selling when the reversal pattern forms on the lower timeframe. To continue the upward movement, it will be necessary to close one of the American sessions above the level of 0.8900. This will keep the remainder of the long position until the upper monthly CP of December. The upward movement is the priority as the current week begins. This should be taken into account when building trade plans.
An alternative model will develop if the pair can consolidate below the lows last week. This will open the way for the depreciation and a weekly short-term test of 0.8667-0.8648 in the near term.
Intraday plan.
The closest support at the beginning of this week can be seen at NKZ 1/4 0.8811-0.8807. The rising demand in the specified zone and the formation of reversal pattern will allow opening purchases, by which the target will be the weekly CP 0.8900-0.8881. Within the daily average, there is a determining support at NKZ 1/2 of 0.8763-0.8754. As long as the pair is trading above this zone, the upward movement will remain impulsive and purchases from the limits of the NKZ 1/2 will make it possible to obtain transactions with a favorable risk-return ratio.
Daytime CP is the daytime control zone. The zone formed by important data from the futures market, which change several times a year.
Weekly CP is the weekly control zone. The zone formed by important futures market marks, which change several times a year.
Monthly CP is the monthly control zone. The zone is a reflection of the average volatility over the past year.
* The presented market analysis is informative and does not constitute a guide to the transaction.
