An upward movement remains a medium-term impulse. Therefore, any reduction must be used to purchase the instrument. The goal of growth is the monthly CZ of January, which allows keeping open purchases already.
Working on the pair involves finding favorable prices for the purchase and retention of already open long positions. It should be understood that the consolidation above the weekly CZ of 109.63-109.64 makes it possible to consider the movement of the 1/2 CZ of 110.59-110.50. Purchases from current levels are not profitable, as setting a stop-loss after the last daily minimum will result in large losses and will not allow you to get a profitable risk-to-profit ratio. However, a reduction to the 1/2 CZ of 109.13-109.04 will give favorable prices, where purchases will acquire priority status.
For the fourth day, the pair is trading within the local accumulation zone. This allows considering going beyond its limits as a confirmation of upward priority. Closing the trading at the current week above the maximum of the environment will continue to hold a long position next week.
An alternative reversal pattern will be developed only in the event of a large supply, which will lead to the absorption of two-day growth. This model will allow you to start working in the flat phase. A flat one involves the search for prices for transactions at its borders. The bottom of the flat is the minimum of the current week, which is located near the 1/2 CZ (defining support for the medium-term trend).
Daily CZ - daily control zone. The area formed by important data from the futures market that change several times a year.
Weekly CZ - weekly control zone. The area formed by marks from important futures market which change several times a year.
Monthly CZ - monthly control zone. The area is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com