After the test of the monthly control zone in June, the AUD / USD pair formed an absorption pattern in the daily level, which helps sell positions keep a good prospect of further decline. The next target of the drop is the WCZ 1/2 0.6777-0.6768, a test of which will allow sell positions to be fixed.
Selling positions at the current levels are not profitable. Thus, those who want to enter short positions will have to wait for a deeper correction before entering the market.
Meanwhile, an alternative scenario will develop if the fall continues from current levels, as it will hinder trading at favorable prices. Nevertheless, it will allow holding previously opened sell positions. The medium-term target for the decline is the monthly control zone in June.
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 the important marks of the futures market, which changes several times a year.
Monthly CZ – monthly control zone. The area that reflects the average volatility over the past year.
The material has been provided by InstaForex Company – www.instaforex.com