Yesterday, a reversal upward pattern was formed , so the update of the weekly maximum is highly likely. The basis of today's trading is keeping open purchases from yesterday.
Also yesterday, the pair tested the defining zone of support for NKZ 1/2 1.2915-1.2901. This led to an increase in demand and an update of the weekly maximum. But today's strong support is the NCB 1/2 1.2939-1.2926. While the pair is trading above the specified zone, the target for growth remains the weekly CP 1.3116-1.3090. A test of this zone will allow fixing a part of a long position and transferring the rest to breakeven.
Yesterday, a complex flat structure was formed , which may introduce ambiguity for an inexperienced trader. It is important to understand that the upward movement is more likely to come from this, forming an intraday trading plan.
To cancel the upward movement, it will require the closure of today's US session below 1.2926. This will oblige to close a long position and look for favorable prices for the sale of the instrument. The probability of implementation of this model is 30%. This makes it auxiliary. Sales from current grades are unprofitable and it is better to refuse them.
Daily CZ - daily control zone. The area formed by important data from the futures market which change several times a year.
Weekly fault - weekly control zone. The area formed by the important marks of the futures market which change several times a year.
Monthly fault - 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