Last week, a correction model was formed for the upward medium-term impulse. The determining resistance is a weekly control zone (KZ) of 1.2390-1.2374. While the EUR/USD pair is trading below the zone, while the bearish movement will remain a priority.

Medium-term plan.

The main task for this week should take place within the framework of two weekly control zones. The resistance zone is the range 1.2390-1.2374, while the support and target for the downward medium-term model are the NKZ 1.2170-1.2154. Working in the flat range implies transactions from its boundaries with the fixation of the larger portion of profit towards the opposite boundary. The remaining part can be transferred to a breakeven point in case the instrument leaves the flat. The entry points can be easily determined on the lower timeframe after the breakdown of one of the small control zones.

To form a descending model from the current marks, the formation of a reversal model is required at the lower time interval. The target of the downward movement will be the weekly KZ 1.2170-1.2154.

Intraday plan.

Today, there is a series of test at NKZ 1/2 1.2298-1.2290, which is the determining resistance. If the American session closed above this zone, then the upward movement will acquire the condition of the short-term momentum. The goal of the ascending model will be a weekly KZ of 1.2390-1.2374 which is located within the daily average. Holding the price below the NKZ 1/2 will open the way for a decline to the weekly KZ1.2170-1.2154, which is located at the boundary of the monthly short-term, its importance is indicated upon stopping the downward movement.

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.