Last week, the pair tested NKZ 1/2 0.6867-0.6860, which led to an increase in demand. Upward movement is impulsive in the medium term. Now we can state the formation of a local accumulation zone, where the extremes of last week come to the fore. Movement within the upward impulse allows you to hold purchases and look for favorable prices for re-entry.
Yesterday's low should be used to find the "false breakout" pattern in case of its retest on today's movement. This will give you the opportunity to re-enter a long position.
To break the upward momentum, the pair will be required to fall to the NKZ a mentioned above. When the next US session closes, the rate should be below the level of 0.6860. If this happens, the upward movement is considered complete, and sales will come to the fore. The probability of implementing this model is at 30%, which does not make it possible for us to consider selling from current levels, since they will not be profitable at a distance.
Daily KZ - 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