The pair is in the stage of formation of a downward model, the purpose of which is to test the weekly short-circuit of 0.7191-0.7178. This morning, the first resistance zone was tested, which led to an increase in supply.
At the end of last week, there was a reversal of the formation of the descending model, which gives you the opportunity to sell the instrument for any growth. The first resistance zone NKZ 1/4 0.7240-0.7237 was tested. This led to the formation of a local accumulation zone. Today the pair again tested another resistance in the form of NKZ 1/4 0.7237-0.7234. Sales from these zones should be brought to the weekly short-term order of 0.7191-0.7178 and partially recorded. The rest should be transferred to breakeven on the event of the continuation of the downward momentum and a consolidation below the level of 0.7178.
Sales from current levels are no longer profitable, as the risk-to-profit ratio will be less than 1 to 3. It is better to refuse to search for purchases, since the probability of updating the weekly low is 70%.
The formation of an alternative deep correction model will require today's trading to close above 0.7237. This will allow us to consider the growth to the NKZ 1/2 0.7271-0.7265, the test of which will be decisive for the bearish momentum. The probability of forming a reversal model from the current levels is below 30%, which does not allow considering long trades when building an intraday trading plan.
Day short - day control area. The zone formed by important data from the futures market, which change several times a year.
Weekly KZ - week control area. The zone formed by the important marks of the futures market, which change several times a year.
Monthly KZ - 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