If the close of trading today occurs above the weekly WCZ 0.6450-0.6438, then the upward movement will become a priority. The November high will be the next determining point in the formation of the upward impulse. Work in continuation of growth will require the formation of a corrective movement.
A return to the upper boundary of the flat will be an important event, since closing of trades below the high of the previous week will indicate the formation of a false breakout pattern.
An alternative model will be developed if the pair can not gain a foothold above the weekly control zone. This should lead to strong supply growth and the absorption of today’s Asian growth. In this case, sales will come to the fore, and the first goal of the fall will be the low of the previous week.
Daily CZ – daily control zone. The area formed by important data from the futures market, which change several times a year.
Weekly CZ – weekly control zone. The zone formed by important marks of the futures market, which change 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
Source:: Control zones NZDUSD 12/2/2019