Work is carried out to this week within the local accumulation zone formed by the highs of the past week. As long as the pair is trading above the 1/4 WCZ of 1.0183-1.0178, the upward movement will remain an impulse. The probability of violation of the upward impulse and the formation of a deep correctional model is 90%, which determines the work within the day. Purchases from current grades are not profitable, therefore a search for a pattern for sale from extremes is required.
The supply zone is already visible to the naked eye, so entering into its limits makes it necessary to consider the possibilities for selling the instrument. Orientation is necessary for the closure of the latest US sessions.
An alternative model will be developed if the current closure of the American session happens below the level of 1.0178. This will indicate a change in priority and movement to the next target zone at 1/2 WCZ of 1.0129-1.0119, where the fate of the medium-term impulse will be determined. Working in the sale to the specified levels allows you to get an advantage in our direction up to 70%.
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