Downward movement is an impulse. The main resistance is still the WCZ 1/2 0.6707-0.6701. While the pair is trading below the specified zone, the probability of updating the monthly low will be 75%. The main objective of the decline is the weekly control zone 0.6633-0.6621. A test of this zone will allow you to record part of the sales opened earlier. The location of recent Asian sessions indicates the formation of a local accumulation zone.
It is important to note that the upward movement of December allows us to talk about the formation of a medium-term impulse, and the current fall is a correctional model, so sales require constant consolidation in significant support areas.
This week there was a return to the monthly control zone of December. The probability of this event was estimated at 90%, since the close of trading last month occurred above the zone. After working out the return model, it is necessary to consider the possibilities for finding a favorable price for the purchase of an instrument. Weekly control zone, which is now the goal, may become a turning point, therefore, its test must be considered for forming a pattern for the purchase.
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 zone formed by important marks of the futures market, which changes 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