Yesterday, the pair re-tested the 1/2 CZ of 110.65-110.57 that led to the formation of the "false breakdown" pattern and allowed to enter the sale. The first goal of the fall is a weekly minimum with the probability of reaching it by 70 percent. When testing this extremum, it will be necessary to close part of the sales and transfer the rest of the volume to breakeven.
Working in the downward direction implies re-sales in obtaining favorable prices. Trading in a pulsed motion allows you to hold sales for fixing at more favorable prices.
An alternative model will be developed if the closing of today's trading will be at the same level or higher than the opening. This will lead to the formation of "absorption" pattern at the trading level, which will stop the depreciation and tell you about the need to exit sales on a breakeven. Working in the upward direction from current marks has a probability of 30%, which makes it not profitable.
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