Last Friday, the US session closed below the weekly KZ 110.37-110.20, which indicates a high probability that the downward movement will continue. Re-sales are possible if the pair forms an upward corrective movement. Favorable prices for selling are at levels 110.16-110.29.
The target of the downward movement is the NKZ 1/2 109.33-109.25, formed from a weekly short-circuit. Achieving this zone will make it possible to consolidate a large part of the profit.
An alternative model will be developed if the close of today's trading occurs above the level of 110.29. This will make it possible to form a local accumulation zone, where favorable prices for selling will be located at the NKZ 1/2 10.65-110.57. It is important to understand that the probability of continuing the downward impulse is at 70%, which makes any sales of the instrument profitable at a distance. In order for the risk-to-profit ratio to be profitable, you will need to wait for favorable prices to open a short position.
Daily KZ - daily control zone. The zone formed by important data from the futures market, which change several times a year.
Weekly KZ - weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.
Monthly KZ - 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