The pair continues to form a medium-term accumulation zone. In the current environment, the next compilation zone was formed. Movement from the zone had a strong drop in the rate, which indicates a downward priority at the end of the current rate and the beginning of the next week.
After the formation of the next compilation zone, the course began a sharp fall without forming the slightest corrective movements. This indicates that large limit orders were withdrawn, which stopped the decline last week. The immediate target of the reduction is the July minimum at 1.1575, where the fate of the current bearish impulse will be determined. The appearance of a large offer and the closing of trades above the level of 1.1575 will indicate the possible continuation of the medium-term flat and return to the bank compilation zone in the future.
The type of reaction may be different, but the closing of the American session above the July low will be an important factor. This will give a foothold, from which you can build a trading plan on Monday.
The continuation model will become relevant if the pair can break through and consolidate below 1.1575 at today's US session. This will open the way for further decline in the medium term. Using the location of the banking compilation areas, it can be concluded that the consolidation below the July low opens the way for a decline to the next support level 1.1526, formed in June. This will indicate the expansion of the range to a long-term and will record the remaining sales.
* The presented market analysis is informative and does not constitute a guide to the transaction.
The material has been provided by InstaForex Company - www.instaforex.com