The downward movement from yesterday’s US session made it possible for us to approach the WCZ 1/2 0.6912-0.6903. The test of this zone will be decisive for the upward movement, since the bullish momentum is not 100% realized. The test of WCZ 1/2 should be considered when searching for a pattern to buy the instrument.
Working within the flat implies a partial exit from the position at the borders of the flat. The pair’s growth will also lead to a test of the upper limit of the flat, where the probability of a large offer will increase.
To exit the flat, you will need to pin the pair above or below one of the control zones. This will allow us to consider forming a new impulse. The upper limit of the flat is the weekly CZ of 0.7032-0.7014. Consolidating above this zone will open the way for continuing the long-term bullish momentum.
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 zone formed by important marks of the futures market, which changes 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