The end of December is usually marked by a decrease in volatility. This should be taken into account when building a trading plan. Lack of trading due to yesterday's holiday did not affect the rate and there is no price gap.
Two days ago, the pair tested a significant resistance of NKZ 1/2, 1.2689-1.2670. Consolidation above the specified zone happened on December 24. This indicates a change in the direction of trade on the upward. Any decline in the pair should be perceived as a corrective and look for favorable prices for the purchase of the instrument. It is important to understand that the movement in the new year holidays may not be strong enough. This will increase the time spent on priority models.
During the holidays, it is better to focus on the average daily course, which will act as support and resistance levels. Going beyond it must be taken as an opportunity to commit transactions.
An alternative model would be to return inside the flat band. This model will make it possible to search for purchases within the accumulation zone. Sales from above the range are possible, but the probability of their working out to the bottom of the range is 30%. This makes them unprofitable in terms of risk-to-profit ratio. It is important to understand that the probability of updating the December high is 70%. This makes any purchase below today's low profitable.
Day short - daily control zone. The zone formed by important data from the futures market, which change several times a year.
Weekly KZ - weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.
Monthly KZ - 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