Reducing the pair is a priority and the probability of updating the November is as low as 70%. As long as the pair is trading below the NCB 1/2 1.2868-1.2854, sales remain the priority. The target zone of decline is the NKZ 1/2 1.2649-1.2636. By achieving this zone, it will allow fixing a short position in full or in part. Within the accumulation zone, growth to the level of 1.2854 is possible. Work in the flat range provides opportunities for obtaining favorable prices for the sale at any growth from the current levels.
Sales from the current grades are not profitable, since the size of the foot will be almost equal to the potential profit, which does not allow to obtain a profitable risk/reward ratio.
An alternative model will be developed in case the pair resumes growth and absorbs the flat of the current week. The closure of the American session should occur above level 1.2868. When forming such a model, the pair will move to the phase of formation of a long-term accumulation zone, where the November maximum will be the target. The probability of implementation of this model is 30% which makes it auxiliary.
Daily CZ - daily control zone. The area formed by important data from the futures market which change several times a year.
Weekly fault - weekly control zone. The area formed by the important marks of the futures market which change several times a year.
Monthly fault - 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