This week, the pair reached the monthly short-term fault of 1.1736-1.1696 for July. This allows us to consider the formation of a deep correctional or reversal model both in the junior and the senior period.
Medium-term plan.
The test of the monthly short-term for July led to the appearance of a large offer, which may cause the formation of a reversal or correction model. If the pair is fixed below the local minimum of the current week, it will be possible to count on a fall to the weekly short-term fault of 1.1543-1.1527, where the fate of the upward medium-term pulse will be determined. It is important to understand that a bullish trend is a strong medium-term structure, therefore, sales should be searched only after a reversal pattern is formed, even at a younger period.
To form an alternative model requires the emergence of a strong buyer in the zone of the local weekly minimum. If this zone is held, then by the end of this week it will be possible to observe the update of the July maximum.
Intraday plan.
Today, the pair is trading near NKZ 1/2 1.1627-1.1619, which indicates a high probability of the emergence of demand. If the instrument continues to trade above this zone, it will allow the formation of the medium-term ascending model to continue. To break the bull impulse, a breakdown and consolidation below the level of 1.1619 will be required at one of the nearest American sessions. If this happens, the next target of the fall will be the weekly short-term fault of 1.1543-1.1527.
Daytime short-term fault is the daytime control zone. The zone formed by important data from the future market, which change several times a year.
Weekly short-term fault is the weekly control zone. The zone formed by important future market marks, which change several times a year.
Monthly short-term fault is the monthly control zone. The zone, which is a reflection of the average volatility over the past year.