Volumetric analysis on October 02
The decline continues, alongside with the strengthening of the dollar in relation to all assets. At the Asian session, we saw a breakdown of support at 1.1565, so it is worth waiting for the correction upward to the zone 1.1565-1.1630. Most likely, there is an open interest of the seller, and only the appearance of a price above 1.1630 will speak about the termination of the downward trend. I would like to draw attention to how the volumes are distributed in the range of 1.1630-1.1565. The maximum volume, the so-called POC, locates at 1.1565, which indirectly tells us that there can be no deep correction.
Yesterday was again affected by the Brexit news. But this time the downward trend is quite strong, and positive news demand was promptly repaid by the offer. Zone 1.3090-1.3160 showed us that the open interest of the seller was there and may even exist now. Therefore, the main priority for us is down. Only the appearance of the price above 1.3160 will speak of a change in the trend. However, we are waiting for the manifestation of the sellers' initiative, the breakdown of 1.3000, the pullback in resistance is 1.3030 - 1.3000 and the move down towards 1.2950. It is worth mention that the maximum volume in this structure appears about 1.3043, so after possible clearance of support, we can expect a rather unpleasant pull back up to the area of 1.3043.
In the course of yesterday's US session, we saw how the initiative bids for sale on this instrument prevailed. This may be the exit of buyers, or the entrance of sellers. To prevent this, indirectly this may indicate a pause in growth. Therefore, join to the purchases could be dangerous. As well as sale. Sales generally makes sense to be more seriously considered only when the price dropped below the 113.30. Meantime, we are looking for a flat movement in the price range of 113.30 - 114.05, with possible purchases from support levels 113.55-113.30 as priority.
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