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Yen may break below 100 in October

al_dcdemo Posted 27 Sep. as Analysis on USD/JPY, Target: 98.75, Date: 1st of November, 12:00 GMT  in #Technical analysis #USD/JPY #Daily Chart #Bearish Bias #Weekly Chart #Technical Tools #50 0 Retracement #Net Long Positioning #Monetary Policy Limits
Technical Tools
Support and resistance (S/R). Price levels, trendlines and Fibonacci retracements. Price action, candlestick and chart patterns. Simple moving averages (SMA). Commitments of traders (COT) indicator, which displays speculative positioning in FX futures market, used as a proxy for speculative positioning in spot FX market.
Weekly Chart
The pair has lost more than 2000 pips this year, dropping below 50, 100 and 200 week SMA. The latter was convincingly broken after U.K. voted to lea…
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al_dcdemo 13 Oct.

UPDATE 6: Minutes of the FOMC meeting that took place in September showed nothing that we haven't already known. Perhaps the most important takeaway is that the federal funds rate is going up, barring an economic shock. The committee members more or less agree on the need to raise the rate, it is the timing that is still being considered. The U.S. dollar broadly strengthened after the release but there's some profit taking noted today. A part of the reason may well be much weaker than expected  Chinese export data that could be taken as a sign of slowing global growth.

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al_dcdemo 14 Oct.

UPDATE 7: U.S. dollar mostly extended its fourth quarter gains against G7 major currencies this week. The exceptions were the Canadian and the Australian dollars while the New Zealand dollar was pulled down by expectations of further easing by the RBNZ. Worries about global growth after much weaker than expected Chinese export data were diluted today by the first positive PPI figure in five years from the #2 economy which could be a sign of better times ahead. The gradual tightening from the Fed that we're seeing should keep risk assets supported.

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al_dcdemo 21 Oct.

UPDATE 8: Major currencies finished the week mixed against the U.S. dollar. The euro moved lower after Draghi dispelled speculation of an early tapering of the ECB asset buying. The franc followed suit. The yen ended the week in the middle of its two-week range. The pound closed marginally higher on short covering. The Canadian dollar tested 1.30 on pretty hawkish statement only to reverse sharply on Poloz's revelation that they considered a rate cut. The Australian and New Zealand dollars remain supported by carry traders, though the former sold off after weak labour force data.

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al_dcdemo 28 Oct.

UPDATE 9: Advance version of the U.S. GDP for the third quarter came in at 2.9% (vs. 2.5% expected and 1.4% previous). The dollar jumped after the release but the gains were quickly reversed. Selling has just been intensified after the news came out that FBI reopened Hillary Clinton investigation. European currencies and the yen are benefiting the most but those are also the currencies that fell the most in the past couple of weeks. Looks more like a position squaring ahead of the next week which will feature BOJ, Fed and BOE meetings.

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al_dcdemo 31 Oct.

UPDATE 10: Sharp moves on Friday afternoon were followed by a relatively calm opening on Monday. Currencies have been mostly unwinding those moves in the first twelve hours of trading. The U.S. dollar rose against most of the major currencies with Canadian and Australian dollars notable exceptions. Holidays in some countries over the next few days shouldn't have a great deal of influence on already low participation that we've been witnessing lately. If past summer is of any guide, otherwise "slow" months can be quite volatile if there's enough substance to drive price moves.

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EUR/USD may pull back ahead of ECB and FOMC

al_dcdemo Posted 21 Nov. as Analysis on EUR/USD, Target: 1.0975, Date: 1st of January, 12:00 GMT  in #Technical analysis #EUR/USD #Breakdown #Bounce #Downtrend #Bearish Bias #Channel Line #Dip Buyers #Upward Sloping Channel #Divergent Monetary Policies
Monthly chart
The pair has been in downtrend since May 2014. After it broke below the longer-term trendline that supports lows of years 2005, 2010 and 2012, a series of important levels gave way, including 2012, 2010 and 2005 lows. The levels were falling like dominoes before the rout finally stalled near the declining channel-line drawn off 2008 and 2010 lows and the long term trendline that connects 1985 and 2000 lows.
Weekly chart
The low was put in place at 1.0462 after stops below 1.05 wer…
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al_dcdemo 4 Dec.

UPDATE 5: ECB cut the deposit rate to -0.30% (from -0.20%) and extended QE program to March 2017 (from September 2016) which was well short of expectations. Given the reaction it seems that the market might have been pricing in a cut to -0.40% and an expansion of QE. Long term trendline, which connects 1985, 2000 and 2015 lows, held once again. 450+ pip rally stalled ahead of 50 DMA and 50.0% retracement of the last downswing. We'll see what the Fed will do but parity party seems ever more elusive.

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al_dcdemo 11 Dec.

UPDATE 6: Euro rallied in the first part of the week and gained above 1.10 for the first time in a good month. The pair stalled between 200 DMA (currently ~1.1030) and 100 DMA (currently ~1.1060) and has been backing and filling since. 1.0850 - 1.0900 shall hold if the post-ECB upswing is to continue. 50 DMA (currently ~1.0950) shall cap it in the meantime. If not, then the momentum of the move may be stronger that it appears at the moment.

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al_dcdemo 14 Dec.

UPDATE 7: Current equilibrium level in the Euro appears to be just below the big figure (~1.0980), basically around the mid point of the three-day consolidation which resembles a symmetrical triangle. The bottom of the pattern is found near 1.0950 and the top around 1.1025. In slightly broader terms, there is a support at 1.0925 - 1.0950 and a resistance at 1.1030 - 1.1060. There's possibility of fake breakouts ahead of the FOMC. Though I'd say the risk is to the upside, at least until 76.4% retracement of the last D1 downswing (~1.1250) is hit.

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al_dcdemo 28 Dec.

UPDATE 8: This week is probably the lightest one for the year with regard to economic data and certainly the most holiday-packed. Lower-tier European data, released mainly on Wednesday, most likely won't have any impact. U.S. will publish CB Consumer Confidence, Unemployment Claims and Chicago PMI, which may contribute to some volatility in these thin conditions.

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al_dcdemo 29 Dec.

UPDATE 9: Last two weeks of a year are known to be the quietest in most markets. Low participation means low liquidity and usually low volatility. However, it's easier to move markets in such conditions and if someone decides to execute a big order, the move could be big too. That move is more often than not faded or at least retraced to a great extent as liquidity returns.

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EURo to remain heavy

al_dcdemo Posted 31 Oct. as Analysis on EUR/USD, Target: 1.0975, Date: 1st of December, 12:00 GMT  in #Technical analysis #EUR/USD #Breakdown #Bounce #Downtrend #Bearish Bias #Channel Line #2005 Low #Upward Sloping Channel #Divergent Monetary Policies
Monthly chart
The pair has been in downtrend since May 2014. After it broke below the longer-term trendline that supports lows of years 2005, 2010 and 2012, a series of important levels gave way, including 2012, 2010 and 2005 lows. The levels were falling like dominoes before the rout finally stopped near the declining channel-line drawn off 2008 and 2010 lows and the trendline that connects 1985 and 2000 lows.
Weekly chart
The low was put in place at 1.0462 after stops below 1.05 were cleared. …
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al_dcdemo 20 Nov.

UPDATE 4: Broader U.S. dollar selling, that started yesterday after publication of the last FOMC meeting Minutes, continued today. Euro rallied a good cent before it ran out of steam above 1.0750. Long term trendline, which I wrote about in my article few weeks ago, is holding for now. However, most signs are pointing to lower prices and the trendline may well give way in the weeks ahead. That would open door to parity (1.00) and maybe even below that, with 0.85 level being often cited in financial media.

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al_dcdemo 22 Nov.

UPDATE 5: Euro lost nearly a cent in the past week against the dollar. Weekly range was worth little less than a cent and a half. The pair started the week on the back foot and convincingly broke below 1.07. It fell to as low as 1.0617, the lowest since mid April. It corrected some of its losses on Thursday, but then Draghi's speech on Friday sent it back to the lows.

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al_dcdemo 23 Nov.

UPDATE 6: Week ahead features a couple of European economic indicators, including PMIs and German Ifo Business Climate. U.S. will report several important data points too: Prelim GDP, CB Consumer Confidence and (Core Durable) Goods Orders. Technical bias in the pair is still bearish though probability of a near term correction is rising as we are approaching 1.05.

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al_dcdemo 27 Nov.

UPDATE 7: Euro lost about a half of a cent against the dollar this week. The range has been tighter than the previous week's one - it was roughly a cent and a quarter wide. The pair extended its decline past last week's low and also closed there. Since mid October, when Draghi revealed that the ECB will review its current policy, the pair has posted five losing weeks out of six.

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al_dcdemo 29 Nov.

UPDATE 8: Next week is the first big week of December, particularly for the Euro. ECB will likely cut the deposit rate and perhaps extend and/or expand its QE program. U.S. macroeconomic data released in the week ahead includes: ISM Manufacturing PMI, ISM Non-Manufacturing PMI and NFP report. The pair is holding just above the resistance band, defined by March (~1.0460) and April (~1.0520) lows. We'll not have to wait too long to see whether it holds or breaks.

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Yen continues south

al_dcdemo Updated 4 Sep.  in #Trader's blog #USD/JPY #Downtrend #Bearish Bias #H1 Chart #Us Jobs Report #Stock Markets
After failing to hold 120 overnight, Yen turned lower and fell more than a cent before pulling back a bit. Second wave of selling sent it down to 118.85 so far. Stock market declines are being cited as the main driver, albeit likely mixed with some positioning ahead of the US jobs report.
Technically, the pair has been in a downtrend since August 24th rout. In my view, 120 - 122 is neutral zone. If the pair wants to re-establish bullish bias it has to break and hold above that zone. On the flips…
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EUR/USD to remain range-bound

al_dcdemo Posted 30 July as Analysis on EUR/USD, Target: 1.1075, Date: 1st of September, 12:00 GMT  in #Technical analysis #EUR/USD #Range #Summer Trading #Bounce #Downtrend #Bearish Bias #Channel Line #Yearly Lows #Data Dependence
Monthly chart:
The pair has been in a downtrend since May 2014. After it broke below the longer-term trendline that supports lows of years 2005, 2010 and 2012, a series of important levels gave way: 50.0% retracement (of the 2000 to 2008 uptrend), 2012 low, 2010 low, 2005 low and 61.8% retracement. The levels were falling like dominoes before the rout finally stopped near the declining channel-line (drawn off 2008 and 2010 lows). Further support comes in at 2003 low (1.0331) and then at 76.4% re…
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al_dcdemo 10 Aug.

UPDATE 4: Next week may well turn out to be one of the most quiet weeks of this summer. Having said that, if the pair continues to gain beyond the trendline drawn off July , August and December 2014 highs (currently near 1.10), the possibility of a larger short covering rally ahead of the September FOMC meeting is not excluded. On the downside, 1.0800 - 1.0850 will have to hold if the pair is to remain in range.

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al_dcdemo 15 Aug.

UPDATE 5: The pair trended higher in the first part of the week and then consolidated in the second. It appears to have decisively broken above the trendline drawn off July, August and December 2014 highs. In addition, it broke 100 DMA and then also 50 DMA and closed above both. Despite slightly extended upper tail, weekly candle looks bullish, particularly in regard to the break of the trendline.

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al_dcdemo 16 Aug.

UPDATE 6: Flash PMIs from Europe and inflation report from the US are main market moving events on the calendar for the week ahead. Technically, the pair will need to stay above both 50 and 100 DMA, if it wants to maintain bullish bias - any pullback towards 1.10 shall be soaked up quickly. The other, perhaps more probable, scenario is a more ranging-like uptrend with a deeper pullback to 1.0900 - 1.0950.

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al_dcdemo 28 Aug.

UPDATE 7: Euro exploded higher on Monday. It rose close to 350 pips from the low of the day, which is the largest daily range since March 18th. It then spent the rest of the week paring gains from the four-day rally. It is back under 1.12  as I type and is poised to close the week near this pivotal level. The result is a big shooting star on the weekly chart.

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al_dcdemo 29 Aug.

UPDATE 8: First week in month is always relevant from the fundamental point of view as we usually get to see a lot of top tier economic data in that period. Week ahead will be particularly important as there's an ECB meeting scheduled too. 50 and 100 DMA, which are currently running just below 1.11, are the support levels to watch in the days ahead. On the topside, 200 DMA is the key level.

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AUD/USD to resume downtrend

al_dcdemo Posted 30 May as Analysis on AUD/USD, Target: 0.7275, Date: 1st of July, 12:00 GMT  in #Technical analysis #AUD/USD #Rba #Fake Breakout #Decline #Bearish Bias #Rba Governor Stevens #Big Figure Level #Four Month Range #Technical And Fundamental Weakness
Monthly chart:
As most major pairs, Aussie accelerated its decline in the first month of the year. After a bit of consolidation it convincingly broke below 0.80 level and 50.0% retracement of the 2001 to 2011 uptrend. In the following four months it traded mostly in 0.7550 - 0.7950 range, but broke higher in the end of April. The breakout appears to have been fake as the pair returned back to the range.
Weekly chart:
Should the downtrend resume, some demand may come in at 0.75 (level touted by …
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al_dcdemo 31 May

I was bullish too, but the latest data was really weak. The pair will need to break below 0.75 though in the days ahead or the sentiment will turn around quickly.

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al_dcdemo 6 June

UPDATE 3: RBA meeting on Tuesday ended as widely expected - with no change. But the market appeared to have been expecting a bit more dovishness from them as when that did not materialize, correction ensued that lifted the pair nearly 200 pips on the day. Final flush-out came on Wednesday after better than expected GDP number and then the pair turned back lower. NFP on Friday sent the pair testing Monday low into 0.76 but was unable to break it.

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al_dcdemo 7 June

UPDATE 4: 50 and 100 DMA capped the pair on Wednesday and will be the first two levels to overcome, if the pair wants to improve its technical picture. Continuation lower and retest of March low appears more likely at the moment and if the pair manages to break below that, May 18th 2009 (0.7450) and May 6th 2009 (0.7336) lows may offer some support before the confluence of 61.8% retracement (of the 2001 to 2011 uptrend) and 76.4% retracement (of the 2008 to 2011 rally) near 0.72.

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al_dcdemo 14 June

UPDATE 5: That the bears are in control was evident on Monday when the pair was unable to completely reverse post-NFP losses as was the case in most other majors. After range-bound Tuesday it managed to break higher on Wednesday but the weakness was again obvious on Thursday when it was unable to extend the gains after much better than expected jobs report. The pair went sideways instead, leaving inside candle on the weekly chart.

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al_dcdemo 15 June

UPDATE 6: Monetary Policy Meeting Minutes from the RBA is the only high impact risk event from Australia in the week ahead. But that's not to say that we won't see some volatility as there are two important events coming up from the US: FOMC meeting and inflation report. Two-week range between 0.76 and 0.78 appears to be the most likely place for the pair until one of the events pushes it through either side.

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EUR/USD parity not just yet

al_dcdemo Posted 30 May as Analysis on EUR/USD, Target: 1.1375, Date: 1st of July, 12:00 GMT  in #Technical analysis #EUR/USD #Bounce #Downtrend #Bearish Bias #Channel Line #Yearly Lows #Strong Resistance #Data Dependence #Lift Off
Monthly chart:
The pair has been in a downtrend since May 2014. After it broke below the long-term trendline that supports lows of years 2005, 2010 and 2012, series of important levels gave way, falling like dominoes: 50.0% retracement (of the 2000 to 2008 uptrend), 2012 low, 2010 low, 2005 low and 61.8% retracement, before it finally stopped near the declining channel-line (drawn off 2008 and 2010 lows). Next support comes in at 2003 low at 1.0331 and and further down 76.4% retracement just abo…
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al_dcdemo 16 June

UPDATE 6: It will be an interesting and possibly volatile week ahead for the pair. The FOMC will meet on 16th and 17th and on the latter day they will publish their latest decision and economic projections, which will be followed by a press conference. The other main story is Greece and the Eurogroup Meetings will be watched closely. Stronger support is seen near 1.1050 (June 5th low, 50 and 100 DMA), while the weekly trendline resistance shall be found between 1.13 and 1.14.

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al_dcdemo 20 June

UPDATE 7: It was a roller-coaster week for the pair in which both sides struggled for domination. It was the buyers who were having the upper hand most of the time, but the sellers wouldn't let them very high. The main event, FOMC meeting, left us none the wiser and the pair jumped on it as there was nothing particularly Dollar-bullish. The main thing that is holding the pair down at the moment is the uncertainty surrounding Greece.

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al_dcdemo 21 June

UPDATE 8: Next week will kick off with the Eurogroup Meetings on Monday and there are rumours in the market that there is some kind of a deal in the making. We'll also have Flash PMIs and German Ifo Business Climate, while from the other side of the Atlantic we'll get: Existing Home Sales, (Core) Durable Goods Orders, Final GDP and Unemployment Claims. We are currently trading in the middle of ascending triangle with support near 1.13 and resistance in 1.1400 - 1.1450 band.

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al_dcdemo 26 June

UPDATE 9: It was an odd week. On Monday, the pair was unable to rally on good prospects for a deal between Greece and its creditors. After EU welcomed Greek proposal as a "big step forward", the pair started to fall and it extended the decline by 200 pips on Tuesday. And then there was no sell-off despite renewed worries on creditors' rejection of the proposal. From there it was tight sideways trading for the rest of the week.

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al_dcdemo 27 June

UPDATE 10: The talks will continue on Saturday and many officials are expecting a deal, while many of others are growing pessimistic. Both sides are relentless on their positions and it appears unlikely that the talks will be concluded this weekend. Initial support is seen near 50 DMA with more in 1.1000 - 1.1050 band, which includes pivotal 1.1075 level and 100 DMA. Initial resistance may be found near 1.1225.

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GBP/USD to remain in recent range

al_dcdemo Posted 31 Mar. as Analysis on GBP/USD, Target: 1.4964, Date: 1st of May, 12:00 GMT  in #Technical analysis #GBP/USD #Cable #Fed #Election #Fake Breakout #Downtrend #Bearish Bias #Uncertainty
Monthly chart:
Current medium-term downtrend has broken longer-term uptrend, which is marked on the chart as trendline that supported the pair in 2009, 2010 and 2013. After trading down to below 1.50 in January, the pair reversed all sub 1.55 losses in February and even broke above the big level. At that point it looked like a bottom is in place, but the breakout proved to be fake as the pair fell all the way to 1.4635, breaking 2013 low in the process. Next stronger support now comes near May 2…
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al_dcdemo 12 Apr.

UPDATE 4: There are two main risk events in the week ahead: inflation report on Tuesday and labour market report on Friday. While the pair may continue to sell off on weaker data, upticks on stronger data may be short-lived as election worries prevail. There's not much support until 1.45 level and 76.4% retracement of the 2009 to 2014 uptrend near 1.4375. Initial resistance should come in near 1.4670 - 1.4700 and then stronger around 1.4750.

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al_dcdemo 18 Apr.

UPDATE 5: Pip-wise, the pair was the second best performer on the week, after Loonie. Weak break of last Friday's low on Monday and subsequent rejection was followed by almost 200 pip rally from the lows on Tuesday (bleak US Retail Sales report) and continued in trending fashion until Friday, when pop above 1.50 on solid UK jobs report was countered by strong selling. It still managed to close near recent range top and above previous week's open.

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al_dcdemo 19 Apr.

UPDATE 6: MPC Meeting Minutes on Wednesday are not expected to offer anything new, while Retail Sales report on Thursday may provide some volatility. Technically, the pair appears poised to break top of the recent range near 1.50 level and 50 DMA. If that happens, 100 DMA is the next level to watch. However, due to UK elections and associated worries, further ranging action in the pair is just as likely.

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al_dcdemo 25 Apr.

UPDATE 7:The pair was the best performer among majors this week, in both pip and percentage categories. It brushed aside election worries, jumped after the hawkish BOE minutes and shrugged off weak Retail Sales report. It added more than two cents, while the weekly range was worth more than three cents. It broke and closed above 50 and 100 DMA and trendline drawn off July 2014 and February 2015 highs, closing the week at the top.

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al_dcdemo 26 Apr.

UPDATE 8: Prelim GDP q/q on Tuesday and FOMC meeting on Wednesday are the main risk events for the pair in the week ahead, but with UK elections closing in and also a holiday extended weekend, there's scope for some near-term consolidation or correction. 1.50 level should now act as a strong support and 50 DMA just below that can be viewed as an additional safety net.

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It's probably still to soon to call GBP/USD bottom

al_dcdemo Posted 30 Jan. as Analysis on GBP/USD, Target: 1.496, Date: 2nd of March, 12:00 GMT  in #Technical analysis #Boe #GBP/USD #Trendline #Cable #Downtrend #Bearish Bias #Resistance Zone #Neutral Mode
Monthly chart:
Current medium-term downtrend has broken the longer-term uptrend, which is marked on the chart as trendline that supported the pair in 2009, 2010 and 2013. After briefly trading below 1.50, the pair stalled just above the level. July 2013 low of 1.4813 should provide some support and, if it goes, there's little to stop the decline until May 2010 low at 1.4228.
Weekly chart:
Monthly trendline, 1.55 level and 20 week SMA will provide resistance zone (1.5250 - 1.5550) in case of a d…
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al_dcdemo 8 Feb.

It was an exceptional week for the pair, in which all three major PMIs showed improvement. The pair staged strong technical breakout from four-week consolidation/wedge and then set the scene for a promising reversal attempt. In the end it was all slightly marred by a very strong US labour report, but if the Dollar won't be able to follow through, this latest dip may prove to be a great buying opportunity.

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al_dcdemo 15 Feb.

The pair started the week on a slightly weaker note, but lack of follow through after last Friday's decline gave the bulls much needed encouragement to hold the price above 1.52. It was not until Thursday, that the pair decisively broke higher on what was generally viewed as hawkish Inflation Report, breaking above the descending trendline that capped the pair since July 2014 and 50 DMA in the process. Next major resistance is now at 1.55 before 100 DMA just above 1.56.

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al_dcdemo 22 Feb.

Weekly range was small (~150 pips) for usually volatile Cable. After jumping on much better than expected jobs report and neutral but positive MPC Minutes on Wednesday, it then failed to follow through on dovish FOMC Minutes. The rally stalled ahead of weekly resistance at 1.55. On Friday it followed the Euro lower but it still managed to close near previous week's close. Outlook now depends on incoming US data, but will need to convincingly break 1.55 to confirm bullish bias.

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WallStreet6 24 Feb.

This one is way off and doesn't seem it will get any closer. If it makes you feel better I was also betting on a retracement down south. But good analysis though.

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al_dcdemo 24 Feb.

Thanks! Probably we were not the only ones, as at that point it looked like momentum even accelerated.

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EUR/USD to continue south

al_dcdemo Posted 30 Jan. as Analysis on EUR/USD, Target: 1.0970, Date: 2nd of March, 12:00 GMT  in #Technical analysis #Euro #EUR/USD #Sma #Confluence #South #Bearish Bias #Parity #Divergence #Big Support Levels
Monthly chart:
After it closed the year 2014 below 200 month SMA, the pair continued its journey to the South with increased momentum. Big support levels (1.20 level, then 2012, 2010 and 2005 lows) fell like dominoes. 61.8% retracement of 2000 - 2008 rally was violated on two occasions, but the pair managed to retrace back above it, so technically it is still holding. If it gives way, the September 2003 low at 1.07606 will come into focus and further down 76.4% retracement (of 2000 - 2008 rally)…
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al_dcdemo 8 Feb.

The pair broke above previous week high and closed above it on two occasions. However, on each following day it reversed and completely erased previous day's gains. The second time it did this was on Friday, in the aftermath of stellar US jobs report. The pair formed a shooting star on weekly chart, but will need to trade below 1.1250 - 1.1275 to confirm the pattern. If the pair won't be able to continue lower after such strong technical and fundamental signals, then that would be pretty bullish.

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al_dcdemo 15 Feb.

The pair started the week with a gap down which was quickly filled and then in another attempt later in the day it also failed to continue past 1.1250. After three days of consolidation, the pair broke higher and ended the week in the middle of the previous week's range. The price action in the pair has been looking more bullish than bearish as the Dollar appears to have been losing steam against most major currencies. I'd say the bias is neutral at the moment in 1.1250 - 1.1500 range. The pair will need to convincingly break either of the extremes to provide direction for the next leg.

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al_dcdemo 22 Feb.

It was another range-bound week for the pair in which it mostly remained between the inner posts (1.1300 - 1.1450) of the 1.1250 - 1.1500 range. It slightly violated them on Friday in the sell-off before the Eurozone-Greece talks. It closed the week bang in the middle of the range (1.1375). Now that Greece was given four-month extension to their bailout there's risk of a deeper correction, especially if US inflation and/or GDP data disappoints.

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WallStreet6 24 Feb.

Less bearish forecast than mine, but stiil the Euro not looking to get near. I don't think the situation in Greece will have such an impact in the following days. Good indicators!

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al_dcdemo 24 Feb.

Thanks! Yep, a tape bomb from Draghi or US CPI and GDP surprises will be needed to get closer to the target.

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