In the second week, there is a formation of a downward model, which makes it possible to search for favorable prices for the sale of the instrument. Yesterday, there was another confirmation of the medium-term decline.
Today, the pair is trading within yesterday's American movement. It has already been tested by 1/4 CZ of 0.7143-0.7111, which came out as resistance. If the pair does not overcome this zone, the downward movement will continue. The probability of updating the weekly minimum is 70%. The most favorable prices for sale are within the 1/2 CZ of 0.7144-0.7137. Achieving this zone will allow you to open a short position with the potential to drop 100 points. This makes sales from this zone profitable, since the ratio of risk to profit with a stop of 20-25 points will be 1 to 4.
The upward movement remains corrective, hence, purchases from current grades are not profitable. The probability of obtaining the required profit is 30%. This does not allow to consider patterns in the direction of growth.
The situation may change in the direction of the strengthening of the Australian dollar if the current closing of the American session occurs above the level of 0.7114. This will allow us to speak about the formation of a local accumulation zone, where the extremes of the last two days will come to the fore. The main resistance will remain to be 1/2 CZ, which will coincide with the top level of the flat. The decisive level of support will be yesterday's closing of the American session.
Daily CZ - daily control zone. The area formed by important data from the futures market that change several times a year.
Weekly CZ - weekly control zone. The area is formed by marks of important times for the market.
Monthly CZ - monthly control zone. The area is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com