EURUSD Medium-term Trading Plan

The second half of January may provide opportunities to enter the purchase if the fall is stopped at one of the significant support levels. To date, the downward movement remains corrective in terms of the latest bullish momentum. The first important support level will be the mark of 1.2000. If its test leads to the formation of the "absorption" pattern of the D1 level, then purchases will come to the fore. The target of the upward movement will again be the January high.

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Working in the direction of an already formed impulse has a higher probability of working out. This suggests the need to search for purchases as long as the ascending structure is not broken. Violation of the structure of the medium-term momentum will occur if the closing of January trading occurs below the opening of December trading.

So far, purchases are more profitable deals in terms of the probability of working out. Sales should be considered corrective, which indicates the need for partial or complete fixation at significant support levels. Moving to breakeven is also an optimal strategy when working with short positions.

The material has been provided by InstaForex Company - www.instaforex.com

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