For today, the main plan is to maintain a long position opened on August 21. Within the current average daily course is a weekly control zone 0.9894-0.9873. The testing of the zone will allow you to close part of the position, and transfer the rest to breakeven, as the probability of moving to the monthly control zone of August continues.
When testing a weekly control zone, it is important to understand that the probability of a large offer is increasing. In the case of the formation of a “false breakdown” pattern, corrective sales of the instrument can be considered.
Meanwhile, the alternative model will be developed if the closing of today’s trading is below the level of the American session on Thursday. This will allow us to talk about the formation of a local accumulation zone, where purchases at more favorable prices will come to the fore.
Daily CZ – daily control zone. An area formed by important data from the futures market that changes several times a year.
Weekly CZ – weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.
Monthly CZ – monthly control zone. An area that reflects the average volatility over the past year.
The material has been provided by InstaForex Company – www.instaforex.com
Source:: Control zones USDCHF 08/23/19