Last week, the pair reached the weekly short-term fault of 0.8924-0.8907, which led to the appearance of a large offer and a depreciation rate. The pair is traded in the medium-term flat range, formed by three-month extremes.
Medium-term plan.
After the test of a weekly short-term fault of 0.8924-0.8907, sales of the instrument became possible. The purpose of which is the annual minimum in the medium term. The first target of the fall is the weekly short-term fault of 0.8743-0.8726, where the fate of the bearish movement will be determined. Working in a flat means making deals closer to the range and fixing on opposite borders, so open sales must be taken out in a breakeven and held until the test of the nearest control zone. For those who are not in a short position, you need to wait for the upward movement and look for the possibility of entry at more favorable prices.
For the formation of an alternative model, the absorption of the fall of the second half of last week will be required. This will allow to consider purchases after the pair can gain a foothold above the level of 0.8924.
Intraday plan.
On Friday, the pair approached the defining support of NCP 1/2 0.8831-0.8823, which allows considering two trading plans. The first plan will be developed in case the test of the specified zone is unsuccessful and the pattern for purchase on Monday or Tuesday will be received. In this case, the goal of growth will be the maximum of last week. If one of the nearest American sessions closes below the level of 0.8823, then it will allow to consider sales, the goal of which will be the weekly short-term fault of 0.8743-0.8726.
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.