Yesterday's test WCZ 1/2 108.06-107.96 made it possible to enter a short position. The purpose of the downward model is the weekly control zone 106.50-106.31. Work in the downward direction will continue to be a priority as long as the pair is trading below the level of 108.06. The potential profit is 120 points, so finding an entry point with a stop less than 40pp will make it possible to obtain a favorable risk/reward ratio.
Work in the downward direction is the main one, however, the closure of today's trading above the WCZ 1/2 will completely change the balance. The beginning of next week will be the time to find favorable prices for purchasing the instrument. The monthly control zone in September will cease to be a strong resistance, which will make it possible for the pair to grow further towards summer extremes. The probability of the formation of this model is 30%, which makes it an auxiliary.
Daily CZ - daily control zone. The area formed by important data from the futures market, which change several times a year.
Weekly CZ - weekly control zone. The zone formed by important marks of the futures market, which change several times a year.
Monthly CZ - 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