The downward movement is the priority at the beginning of the week, the goal of which is the NKZ 1/2 1.1327-1.1318. A test of the specified zone will make it possible for us to determine the next priority. To resume growth, it is necessary to hold the position above the NKZ 1/2 in the US session. If this happens, the first goal of the upward impulse will be the high of last week.
When searching for entry points to purchases at the NKZ 1/2, you should use the simplest pattern to confirm. Buying with a limit order is also possible, but it is necessary to correctly calculate the risk-to-profit ratio in order for the transaction to be profitable at a distance.
An alternative model will be developed in case the closure of the US session on Monday occurs below the level 1.1318. This will allow you to refuse purchases and go to work in the downward pulse phase. The purpose of the decline will be the weekly short circuit 1.1235-1.1217. It is important to note that the second month is the formation of a long-term zone of accumulation, where the monthly extremes are important levels of support and resistance. Approaching them or their test will oblige to close part of the position and open trades in another direction.
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