Last week, the pair repeatedly tested the NCZ 1/4 109.71-109.68. The closure of the US session did not occur below, indicating continued growth. The target zone is the weekly CP 110.40-110.23, a test of which will complete the first growth cycle and allow you to take profit on open purchases. It is important to understand that the emergence of a strong offer after the zone test will indicate the possibility of selling when forming the corresponding pattern.
It is important to note that the current phase is flat, therefore fixations on its boundaries are the optimal strategy of position management. Sales from the upper border are possible only after the appearance of the pattern.
An alternative model will be developed in case the pair starts a sharp decline, without having completed the upper control zone. This will make it possible to get a better price for the purchase of an instrument within the NKZ 1/2 109.20-109.28 in the future. On higher timeframes, the strength of the upward movement is clearly monitored, so you should not rush to complete the closing of purchases.
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