Volumetric analysis on October 04


A confident decline in quotes leaves fairly accurate traces in terms of volumes. If we pay attention to how volumes are distributed at the moment of depreciation, we will see that the maximum value is in the price range of 1.1510-1.155, or rather even closer to 1.1590. Therefore, only the breakdown of the level of 1.1590 will tell us that the downward trend is over. But usually such trends do not revert easily, at least without the strong fundamental background. But let us pay attention to the fact that the economic calendar for today is empty, and tomorrow's data on the labour market in the USA are no longer important for the economy. As a conclusion, it is worth counting either on the downtrend development, or the outset, in the structure of which sales are in priority. The designated price range of 1.1510-1.1590 is taken as resistance, the next goal for reduction is 1.1420.


The technical picture of this pair is very similar to the picture of the previous pair. Likely resistance in the price range of 1.2970-1.3050 and the maximum volume, which is around 1.3050. Accordingly, the ideas for today are the same. We are counting on the continuation of the decline with targets at 1.2910 and 1.2850 in perspective. Perhaps before that we will see a rebound from the resistance 1.2970-1.3050. And only the appearance of prices above 1.3050 will tell us that the downward trend has stopped. The side formation also possible, however, even if we are in a side event, sales in it will be prioritized, since the main structure is down.


During the previous three trading days, the pair traded in a small range, and we assumed that the upward momentum could take a place. Now we can assume that for three days we were not just standing, but picking up open interest, which should be in the range of 1.2845-1.2780. If we see a price reduction, then we consider this phenomenon as a correction. Starting at 1.2845, we begin to expect the price reaction to consider purchases with a view to 1.2920. And only the appearance of prices below 1.2780 will tell us that the downward trend is the main structure.




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