Testing of the 1/2 WCZ makes it possible to consider purchases from the zone during the second test and the formation of the “false breakdown” pattern. The main growth target is the weekly control zone of 1.2384-1.2350, which gives a favorable risk-to-profit ratio for a long position.
The last downward movement took place over three days. To confirm the reversal pattern, it will be necessary to close the American session above Friday’s opening.
An alternative fall model will be developed if the closure of today’s US session occurs below 1.2123. This will indicate the need to find favorable selling prices for the current week. The first goal of the fall will be the August low.
Daily CZ – daily control zone. The area formed by important data from the futures market, which changes several times a year.
Weekly CZ – weekly control zone. The area formed by marks from the important futures market, which changes several times a year.
Monthly CZ – monthly control zone. The area is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company – www.instaforex.com
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