After the test of 1/2 WCZ at 1.1136 - 1.1128, the upward movement continued. It is important to note that growth was a priority two weeks ago. The first target of the bullish momentum is the high of last week. Achievement of this mark will allow fixing a part of purchases and transfer the rest to breakeven as the pair may remain within the medium-term accumulation zone.
Since the upward movement is an impulse, any reduction should be used to search for favorable purchase prices. The reduction in the average daytime running is an excellent range for entering a long position.
An alternative model will be developed if today's closure of the American session occurs within the 1/2 WCZ or lower. This will speak about the emergence of interest in the weakening of the euro and the change of dynamics in the near future. Until this happens, the probability to test is 30% at least last week. Hence, the bear model is auxiliary and sales are not profitable.
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