The downtrend yesterday allowed implementing two downward models at once. The first goal was taken before the European session. Yesterday's trading closed below a weekly control zone which translates the bearish movement into a pulse.
Today, the pair went beyond the average weekly move. This suggests an increase in the probability of the formation of an upward correctional model. The saturation of important news today and the expiration of options contracts tomorrow may lead to a sharp increase in demand and test one of the correction zones. To date, there is no point of support for the formation of control zones in the direction of growth since there is no fixed minimum of the week. It is necessary to wait for the first demand and the formation of the market maker level.
Sales from the current figure are unprofitable since the probability of returning to the zone of the average progress of the week is 90%. This does not mean that it is necessary to buy from current grades but any formation of a purchase pattern will allow it to be done with a high probability.
An alternative model will be developed if the pair continues to fall in a recoil-free scenario. In this case, the main goal of the fall will be the monthly control zone in February. This model should be auxiliary for building a trading plan since sales outside the range of the average weekly move are extremely unprofitable. The best option for trading will increase to a significant resistance zone.
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