This week, a local accumulation zone is being formed. The pair is sandwiched between two significant control zones. Growth remains a priority, as the bullish structure has not been disrupted.
Strong news regarding the interest rate of the US dollar did not have a strong impact on the market, which allowed the pair to stay within the local weekly flat. The defining support is nch 1/2 1.1723-1.1714, formed from the highest of the current week. While the pair is trading above this zone, the upward movement remains a priority, and its test will allow to obtain favorable prices for the purchase of the instrument.
The purpose of growth is the nch 1/2 1.1829-1.1820, the test of which will complete the next cycle of the upward momentum. It is important to note that the last impulse upward movement occurred on September 20, which indicates a large number of accumulated contracts within the current flat.
To complete the upward cycle and form a reversal model, it will be necessary to close today's US session below the level of 1.1714. If this happens, the pair will exit the flat range and the target of the fall will be the weekly KZ 1.1631-1.1631. The probability of implementation of this model at the moment is 30%, which makes it possible to use it as an auxiliary one.
Day short - day control area. The zone formed by important data from the futures market, which change several times a year.
Weekly KZ - week control area. The zone formed by the important marks of the futures market, which change several times a year.
Monthly KZ-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