The upward movement remains a priority, which considers any decline to find advantageous buying prices. Yesterday, there was a test of the first target zone NKZ 0.7341-0.7329.
The first formation phase of the upward model is completed and there was a test of the weekly short-term 0.7341-0.7329 since yesterday, which allowed the fixations of long position. Further growth will depend on whether the pair can gain a foothold above this zone. If this happens, the next target will be the NKZ 1/2 0.7410-0.7403 formed from the current zone. This will provide an opportunity to hold some portion of the purchases and consider new deals in case of a decline in the pair. The first support for finding purchases today is the NKZ 1/4 0.7314-0.7311.
Growth from current marks is also possible, however, purchases at these prices will not be profitable because of lack of momentum which can be an advantage to set a stop-loss. This indicates the need to expect more favorable prices.
The alternative reversal model has a probability of 30% and requires the absorption of yesterday's growth and the closing of the American session below the NKZ 1/4 0.7324-0.7331. This will allow to consider sales against the last impulse movement. Closing the today's trading above the level of 0.7341 will prevent this formation, so players need a large offer on one of the volatile trading sessions.
Daytime CP is the daytime control zone. 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 important futures market marks, which change several times a year.
Monthly CP is the monthly control zone. The zone is a reflection of the average volatility over the past year.
* The presented market analysis is informative and does not constitute a guide to the transaction.
The material has been provided by InstaForex Company - www.instaforex.com