When building a trading plan, it is necessary to take into account the fact that the closing of the last month occurred outside the middle course. This increases the likelihood of a return to the level of 1.2725 to 90%. If the close of today's trading occurs below the WCZ 1/2 1.2820-1.2801, then the return will become a matter of time and will happen next week.
Work in a downward direction gives a favorable risk to profit ratio, however, sales from current levels are not profitable, as the pair is trading at a low of the last two weeks. If consolidated below this mark, sales will be highlighted.
An alternative model will be developed if the closure of today's trading occurs above the WCZ 1/2. This will make it possible again to consider purchases, the purpose of which will be a monthly high in the medium term.
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