From a comprehensive analysis, we see an interesting pattern with upward impulses. Now, about the details. The corrective move is in full swing, the quote has successfully worked out the average level of the psychological range of 1.0700//1.0775//1.0850 and went towards the upper border, where it managed to fix higher, thus prolonging the correction. Relative to the entire value of the last downward trend, the correction looks insignificant, thus there is no alarm of a possible fracture of the clock component. A remarkable point was the pattern of the past three days. At the same time, there were impulse jumps in the upward direction. We noticed this pattern yesterday, referring to Friday and Monday. However, it was repeated with a small error on Tuesday.

Friday: 16:30-17:15 (time on the trading terminal)

Monday: 16:00-17:00 (time on the trading terminal)

Tuesday: 17:15-18: 15 (time on the trading terminal)

What is happening is very similar to the capital overflow, where the placement of US debt obligations takes place. The phenomenon is interesting. There is no exact confirmation that there is such an impact on the course, so we continue to monitor and analyze this theory.

In terms of volatility, we see a steady acceleration that lasts for the third day, where the daily average is steadily breaking through. In fact, this activity again proceeds from the above theory.

Analyzing the past day by the minute, we see that there was an attempt to return sellers to the market in the beginning, fixing below the level of 1.0850, while having impulse candles. After that, the quote finds variable support in the area of 1.0830 and stagnation is formed in a few hours. Then comes an upward momentum, as described above.

As discussed in the previous review, traders expected a breakdown of the area of 1.0815, which did not happen for the formation of short positions in terms of intraday trading. Medium-term positions remain on the decline, and the existing correction has not yet brought the necessary pressure.

Tuesday's trading recommendation regarding the possible retention of the corrective move brought a small profit to the piggy bank.

(Buy positions will be considered if the price is fixed higher than 1.0875.)

Looking at the trading chart in general terms (daily period), we see that the correction is at the level of 18%. Regarding Fibo, the nearest level of 38.2 is located around the mark of 1.0950.

The news background of the day included S&P / CS data on home prices in the United States, which recorded an acceleration from 2.5% to 2.9% with a forecast of 2.7%.

There was no market reaction to the positive statistical data, and the dollar was losing its position at this time.

In terms of the general information background, we have information that the EU General Affairs Council approved the mandate of the European Commission in negotiations on future relations with Britain after its withdrawal from the EU. In the existing document, it was mentioned that the European Union plans to designate free trade zones with Britain, as well as equal conditions, fair competition and relations in the field of fishing.

During this event, EU chief negotiator Michel Barnier announced that the first round of talks on the future partnership between the EU and the United Kingdom will be held from March 2 to 5 in Brussels. Barnier also explained that they will not rush to conclude a deal due to the tight deadline. However, the deal will be concluded at any cost.

"We will not conclude this agreement at any cost. We will methodically and calmly insist on a mutually beneficial partnership. The time is very short. Britain insisted on such a schedule. These are complex and multi-faceted negotiations," said Michel Barnier.

In the previous review, we touched on the topic of a futures contract for the Fed rate, with the risk of its lowering during the next meeting. Now, Federal Reserve Deputy Chairman Richard Clarida said during a speech at the National Association of Business Economics conference that the Federal Reserve is monitoring the possible impact of the coronavirus outbreak on the American and other economies, and the risk of consequences remains.

"There are still risks in the forecasts. In particular, we are closely monitoring the situation with the coronavirus outbreak, which is likely to have a noticeable effect on growth in China, at least in the first quarter of this year," said Richard Clarida.

Today, in terms of the economic calendar, we have data on new home sales in the United States, where they forecast an increase from 694,000 to 710,000.

Further development

Analyzing the current trading chart, we see that the last jump updated the maximum of the available correction, where a conditional ceiling was found near the mark of 1.0900, forming a stagnation with a pullback. In fact, we see that the correction already has the proper scope, and we can expect a resumption of the original course in the near future. At the moment, the maximum possible correction point remains at 1.0950, which should be taken into account when calculating the risk.

Detailing the available period by the minute, we see that the activity was recorded at the beginning of the European session, where the correction maximums were updated during the impulse candles.

In turn, traders are now cautious about actions, since the conditional ceiling is already close, and entry into descending positions will only be possible if the price is fixed below 1.0860. At the same time, the next point of consideration for short positions will be in the area of 1.0950.

It is likely to assume that the corrective move will still torment supporters of the downward move, where a swing towards the mark of 1.0950 is not excluded, although the mark of 1.0900 can play a reporting point for short positions.

Based on the above information, we will output trading recommendations:

- Buy positions will be considered if the price is fixed higher than 1.0900 (in the direction of 1.0950).

- Positions for sale are already held by medium-term traders. Intraday traders are waiting for the price to be fixed below 1.0860.

Indicator analysis

Analyzing different sectors of timeframes (TF), we see that the indicators of technical instruments are in the correction phase, displaying a buy signal. At the same time, the daily periods maintain a downward interest, focusing on the overall tact.

Volatility for the week / Volatility Measurement: Month; Quarter; Year.

The volatility measurement reflects the average daily fluctuation from the calculation for the Month / Quarter / Year.

(February 26 was based on the time of publication of the article)

The volatility of the current time is 35 points, which is close to the norm for this period, but even lower than the average daily indicator. It is likely to assume that with the current speculative mood, there is a chance of acceleration.

Key levels

Resistance zones: 1.0900/1,0950**; 1.1000***; 1.1080**; 1.1180; 1.1300**; 1.1450; 1.1550; 1.1650*; 1.1720**; 1.1850**; 1.2100.

Support zones: 1.0850**; 1.0775*; 1.0700; 1.0500***; 1.0350**; 1.0000***.

* Periodic level

** Range level

*** Psychological level

***** The article is based on the principle of conducting a transaction, with daily adjustments.