The current movement of the Asian session made it possible to implement a priority descending model. The weekly test of 111.89-111.71 indicates the need to fix a portion of sales. The rest can be converted to breakeven.
The downward movement moves into the medium-term phase. If today's closing of the US session is below the level of 111.71, the second half of December will more likely pass in a downward direction. If there is already a short position, then it can be left and transferred to breakeven. In the event of a fall to the monthly short-term, it will be possible to slightly increase the potential profit. Now it is important to note the fact that the pair went beyond the average course of the week. This allows us to assume the formation of an upward corrective movement, which will give the opportunity to once again enter a short position.
The current movement is an impulse, so expect a sharp increase in demand and a violation of the bearish model is not necessary, but you can take profit in the direction of a correction after the formation of a buying pattern.
An alternative model will be developed in the event that the last session fall is absorbed today or tomorrow. This will allow us to consider purchases, the purpose of which will be the movement to the level of opening of trading in December. The probability of formation of this model is 30%. This does not allow it to be used as the main one, and purchases are less profitable at this stage of the bearish momentum formation.
Day short - daily control zone. The zone formed by important data from the futures market, which change several times a year.
Weekly KZ - weekly control zone. 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