Last week, an accumulation zone was formed. The price is squeezed between two control zones and the outflow of which will indicate the further direction of trade in the first half of August.
Yesterday, the a control zone at 1.3151-1.3145 was tested, which led to the appearance of a proposal and the absorption of the growth of the European session. This fact allows us to consider the work within the medium-term accumulation zone. Sales from current marks are not profitable until the confirmation of a downward impulse. This will happen if the closure of today's US session occurs below the 1/2 control zone of 1.3084-1.3072.
The goal of the fall will be the weekly control zone of 1.2956-1.2930, within which the July minimum is located. This will provide an opportunity to fix most of the sales and consider the formation of a reversal model.
For the resumption of growth will require the emergence of large demand in testing the a control zone of 1.3084-1.3072. This will indicate a high probability of a second weekly test of 1.3239-1.3213. The ratio of risk to profit in purchasing on the upward model will be 1 to 4, which makes them profitable. Working in the current flat medium-term zone allows you to take profit on its boundaries and look for patterns of entry. An important criterion is the favorable risk-to-profit ratio. If this relationship cannot be reached, it is better to skip the deal.
The daytime CP is the daytime control zone. The zone formed by important data from the futures market that change several times a year.
The weekly CP is the weekly control zone. The zone formed by marks from important futures market which change several times a year.
The monthly CP is the monthly control zone. The zone is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com