The third day is the formation of a downward correction model, the purpose of which is NCZ 1/2 0.8869-0.8861. The test of the specified zone will determine the priority for the second half of the week.
The upward movement remains a medium-term impulse, as local drops do not exceed the size of the control zones of the younger period. The current goal of the reduction is the main support of the NCC 1/2 0.8869-0.8861. Purchases from the limits of this zone allow you to get a deal with a good prospect, since the size of the stop-loss will be several times less than the potential profit, which is located within the NKZ 1/2 0.8986-0.8978. The risk-to-profit ratio is estimated as one to four.
It is important to note that the support zone of NKZ 1/2 coincides with an important level formed in early July, which was the resistance for more than two weeks. This indicates its strength and increases the probability of finding large limit orders below 0.8869.
To break the upward momentum and cancel purchases, the closing of the day's US session must be below the level of 0.8861. This will allow us to consider the fall, the goal of which will be the weekly short-term balance of 0.8781-0.8764. Sales transactions can be opened not earlier than Thursday's European session, as there are no conditions for sale yet and the upward movement remains a priority.
Daytime CP is the daytime control area. The zone formed by important data from the futures market, which change several times a year.
Weekly CP is the weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.
Monthly CP is the monthly control zone. The zone, which is a reflection of the average volatility over the last year.
The material has been provided by InstaForex Company - www.instaforex.com