Medium-term trend: Bearish
The bear market is continuing. The price has already reached the target zone №1 1.14369-1.14185 but it hasn’t been fixed below the zone and now it’s near the control resistance zone 1.15339-1.15247. Until the price was fixed above this zone, we can consider only short positions. The best prices to try to have a short position are the control resistance zone. In case of the price is fixed upper the control resistance zone the medium-term trend will be changed to the bull market and all short positions should be closed.
Trading recommendation:
It’s recommended to try to have a short position near the control resistance zone 1.15339-1.15247 (100 points from current minimum) with using the pattern «Head&Shoulders» at least on timeframe M15.
The control resistance zone is constructed from the current minimum. If this minimum changes by n points the zone should also be shifted n points down. The risk/reward ratio for every order should be at least 1/3.
All zones are constructed on the basis of data from the CME futures market.
Target zone:
Internal border – Maintenance margin size in points
External border – Initial margin in points
Control resistance zone – the half from the target zone
Resistance zone – the quarter of the target zone
Source: Forex analysis from the broker AMEGA
