Movement remains a medium-term impulse. But this week, the formation of a reversal pattern of a younger period took place. Within the formed accumulation zone, a search for a pattern for the sale of an instrument is required.
On Tuesday, the fall in the rate led to the formation of a reversal pattern after the closure of the American session occurred below the NKZ 1/2 1.1380-1.1371. This allows us to consider a decrease to the weekly CP 1.1288-1.1270 with a higher probability. Moreover, yesterday's growth led to the NKZ 1/4 test 1.1409-1.1405, which was the first resistance. Holding the price below this zone will allow you to keep a short position per profit of 150 points.
The size of the stop-loss should not exceed 40 points, otherwise sales will no longer be profitable. It should be born in mind that the NKZ 1/2 1.1463-1.1454 remains the choosing resistance.
An alternative model will be developed if in one of the volatile sessions the pair can consolidate above the level of 1.1409. This will increase the likelihood of growth to the NCB 1/2 1.1463-1.1454, a test which will determine further priority. This model will allow working in the flat phase, where the extremes of the week will come to the fore. While the US session closes below 1.1463, the downward movement remains a priority.
Daily CZ - daily control zone. The area formed by important data from the futures market which change several times a year.
Weekly fault - weekly control zone. The area formed by the important marks of the futures market which change several times a year.
Monthly fault - 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