At the beginning of this week, the main support is 1/2 WCZ of 107.25-107.16. Testing this zone will allow you to consider the pattern for the purchase. The first growth target will be last week’s high. Further growth will depend on whether the yen can gain a foothold above the extremum.
Now, we can see the formation of a local accumulation zone, which determine the further priority of the pair. In most cases, going beyond it will indicate the direction of bidding in the second half of the week.
An alternative model will be developed if the pair continues to grow from current levels. This model also has a high probability due to the opening of trading with a price gap. The absorption of the price gap usually occurs in the near future.
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 marks from the important futures market, which changes several times a year.
Monthly CZ – monthly control zone. The area is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company – www.instaforex.com