The upward movement remains a strong medium-term momentum, which determines the direction of trade for the current week. Any drop should be considered from the point of view of obtaining favorable prices for the purchase.
Yesterday, a test of the important target zone NCP 1/2 1.3209-1.3198, which led to the appearance of the proposal. The first support is the NCP 1/4 1.3158-1.3153, the test of which will allow considering the purchases that will be aimed at a weekly extremum. The defining support is the NCP 1/2 1.3108-1.3098. While the pair is trading above this zone, the upward movement will remain a medium-term pulse, and the test of the zone itself will allow obtaining the most favorable prices for the purchase of the instrument.
Yesterday's movement exceeded the average daily turn, which increases the probability of retesting a maximum to 90%. This should be taken into account when building an intraday trading plan.
To cancel the upward movement, yesterday's upturn is required and the closing of the American session is lower than the NCP 1/2 1.3108-1.3098. This will close the balances of the long position and begin to consider sales in the medium term. The probability of forming this model is 30%, which makes it auxiliary in the event of a large supply. Sales from current marks are not profitable, as the medium-term phase of a bullish pulse indicates a high probability of a September peak update.
The daily short-term fault is the daytime control zone. The zone formed by important data from the futures market, which change several times a year.
The weekly short-term fault is the weekly control zone. The zone formed by important futures market marks, which change several times a year.
The monthly short-term fault is the monthly control zone. The zone, which is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com