For the second day in a row, the pair is testing a weekly short-range of 1.1.606-1.1588, which invariably leads to an increase in demand and keeping the price above the support. Today, the determining resistance is nkz 1/2 1.1675-1.1666.
Yesterday, there was another weekly short-term test, which indicates the presence of large limit orders within it. The closing of the US session occurred above the NCC 1/4 1.1626-1.1621. This gives the opportunity to consider the continuation of growth. The main resistance to the strengthening of the euro will be the NCC 1/2 1.1675-1.1666. If the pair continues to trade below the specified zone, the downward movement will continue, and the July low will be updated in the medium term. For those who hold sales made on July 16 or 17, it is necessary to take care of the transfer of the position to breakeven and prepare for profit taking in case of a breakdown of the resistance zone.
For the downward movement, the weekly short-term is still insurmountable, and the formation of daily candles indicates the emergence of demand during the trading period of the US exchange. It can be assumed that the European session give favorable prices for the purchase, which is used by Americans, buying off the futures of the euro. It is necessary to have a major proposal at the next US session in order to change the dynamics.
The reversal model will be developed if the pair can gain a foothold above the level of 1.1675 at today's US session. This will open the way for growth to the weekly KZ 1.1777-1.1759, which will indicate the continuation of the formation of a long-term accumulation zone. A little higher than the short-term weekly target is the July peak, the test of which will increase the probability of a major proposal. This indicates the need to lock in a long position next week.
Daytime CP is the day control area. 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 the important marks of the futures market, which change several times a year.
Monthly CP is the monthly control zone. The zone, which is a reflection of the average volatility over the last year.
The material has been provided by InstaForex Company - www.instaforex.com