The formation of the medium-term accumulation zone continues for the third month, which allows us to consider quarterly boundary as the determined levels of support and resistance.
Medium-term plan.
The last day of the previous week and the beginning of the current week is characterized by a trade within the weekly control zone (KZ) 0.8789-0.8770. The absence of the consolidation below indicates that the probability of growth to the November maximum remains 70%. Purchases from the zone limits offer a good risk-to-profit ratio. A reversal model on the lower timeframe did not occur yet, but the availability of demand within the specified zone allows keeping purchases with an expectation of medium-term growth.The movement of the EURUSD pair is a stable support in determining further priority, where a reversal pattern may be formed in the near future.
To form the continuation of the decline, it is necessary to fix the rate below 0.8770 in one of the American sessions. If this happens, the target of the decline will be the monthly KZ in December.
Intraday plan.
On the fourth day, the accumulation zone is formed between the weekly KZ 0.8789-0.8770 and the NKZ 1/2 0.8860-0.8851. The framework of this flat indicates for keeping some of the purchases in case of breaking the downward structure. The formation of the reversal model requires a breakout and fixing positions on top of the 0.8860 level at one of the American sessions. If this happens, the next growth target will be the weekly KZ 0.8966-0.8947. To continue the downward movement, it will be necessary to hold the pair below the NKZ 1/2 and further consolidate below 0.8770.
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.