Last week’s strong momentum made it possible for the pair to reach the monthly control zone of June. This suggests the need to close all short positions. For further work in the direction of strengthening the franc, it will be necessary to form a correctional model, since the pair has gone beyond the weekly average move. The probability of returning to this range is 90%.
Work towards the weakening of the Swiss franc will be corrective. This suggests the need to consolidate purchases at significant levels of resistance and the search for favorable prices for selling the instrument.
An alternative decline model has a low probability, which makes sales from current levels unprofitable at a distance. Work within the bearish impulse implies finding more favorable prices for selling the instrument. The presence of the pair within the monthly control zone indicates the possibility of the appearance of a large demand. This requires searching for pattern to buy the instrument. The simplest pattern is the “false breakdown” of the nearest daily or weekly lows.
The material has been provided by InstaForex Company – www.instaforex.com
Source:: Control zones USDCHF 06/24/19