oday’s growth of the pair must be considered for forming the “false breakout” or “absorption” pattern, since the probability of continued decline is 70%. The first resistance will be WCZ 1/4 0.6398-0.6395. Testing this zone will provide an opportunity to enter a short position.
Work in the downward direction will remain a priority as long as the pair is trading below WCZ 1/2 0.6431-0.6425. This zone is crucial in constructing trading plans for the day and week.
An alternative model will be developed if today’s trading closes above the level of 0.6398. This will make it possible to consider growth to WCZ 1/2, where it will be possible to obtain the most favorable prices for selling the instrument.
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 09/16/19