The growth of the previous two days allowed the formation of the “absorption pattern” of the two-day level. This may become the first step for further growth if the price is kept above the Weekly Control Zone 1/4 106.63-106.56. It is important to note that the average weekly control zone was reached yesterday, which caused a halt to further upward impulse.
Working in the direction of the weakening of the Japanese yen may become the main one next week. This will require the Asian or American session to close above the Weekly Control Zone 1/2 107.90-107.74. This model may be decisive in the first half of July.
The alternative model of continuing the decline has a probability of less than 25%, which makes sales from the current levels not profitable. Thus, the pair is likely to stay above the trading range of the current Wednesday until the end of June.
Daily CZ – daily control zone. The zone 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. The zone that reflects the average volatility over the past year.
The material has been provided by InstaForex Company – www.instaforex.com