Today, the pair is testing a weekly short-term fault at 1.3048-1.3024, which will be crucial for further medium-term traffic. Closure of trading above the above zone will help to keep purchases opened yesterday.
Yesterday's test of NCP 1/2 1.2907-1.2895 led to the emergence of large demand in the US session and the absorption of the Friday's fall, which occurred due to expiration of options. This fact speaks for the continuation of the upward movement, started on September 5. If today's US session closes above 1.3048, then the next bull momentum will be NCP 1/2 1.3180-1.3168, and any decline can be perceived as a correction and used to open a long position.
It is better to refrain from buying at current prices, as the pair is trading close to the August high, which may lead to the appearance of a large offer. This does not allow you to set an adequate stop and makes purchases unprofitable.
To cancel the ascending option, it will require the appearance of a large offer and the absorption of yesterday's growth. The probability of forming such a model is 30%, so sales from current marks, as well as purchases, are not profitable. To open sales requires the formation of a reversal pattern. From the above, we can conclude that the only plan so far remains the retention of yesterday's purchases. The topping will become possible after the today's US session is fixed above the weekly short-circuit.
The daily short-term fault is the daytime control zone. The zone formed by important data from the futures market, which change several times a year.
The weekly short-term fault is the weekly control zone. The zone formed by important futures market marks, which change several times a year.
The monthly short-term fault is the 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