Last week's bearish momentum remains the basis for building a trading plan. It is important to note that the formation of a medium-term accumulation zone has already been taking place for the fourth week. Yesterday's low was close to the flat bottom, which may cause the appearance of demand and the formation of a corrective upward movement.
Today's growth to the 1/4 WCZ of 1.1186-1.1182 and the formation of the "false breakdown" pattern will allow you to enter a short position. If the closing of today's American session happens above the level of 1.1186, this will indicate a change in dynamics and tomorrow, you will need to search for purchases in case of depreciation. The probability of implementing this model is 30%, which makes it auxiliary. Within a medium-term flat, a buy-in operation from the lower range can give a good risk-to-reward ratio, which eliminates the low probability of finalizing.
Daily CZ - daily control zone. The area formed by important data from the futures market, which changes several times a year.
Weekly CZ - weekly control zone. The area formed by marks from the important futures market, which changes 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