Yesterday's movement allowed the formation of a local accumulation zone. Favorable selling prices are in the range between this extreme and WCZ 1/2 1.3165-1.3156. A false breakout of yesterday's high will make it possible to enter the sale. The first target of the bearish movement will be a weekly low. A further fall will depend on how the price responds to the extreme.
Work in the downward direction is a priority, while the pair is trading below the WCZ 1/2. Testing this zone will allow you to get the most favorable prices for selling the instrument.
An alternative model will be developed if the closing of today's trading occurs above yesterday's high. This will indicate continued formation of the accumulation zone. To cancel the bearish impulse, closing of trades above WCZ 1/2 will be required. This will complete the current impulse phase and allow you to search for purchases tomorrow. The probability of implementing this model is below 30%, which makes it an auxiliary.
Daily CZ - daily control zone. The area formed by important data from the futures market, which change several times a year.
Weekly CZ - weekly control zone. The zone formed by important marks of the futures market, which change several times a year.
Monthly CZ - 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