Yesterday, the closing of the US session occurred below the WCZ 1/2 1.3490-1.3479. This indicates that the local zone of accumulation will continue to form. To continue the downward movement it is necessary to keep the price below the level of 1.3490. The first goal of the decline will be the low of the current week. Achieving this mark will make it possible to close part of the position, transfer the rest to breakeven.
The most favorable prices will be available in the event of a re-test of the high of the current week. The formation of the "false breakout" pattern will provide an opportunity to open a short position for those who are yet to sell.
For the abolition of the downward option, this will require a breakdown of the WCZ 1/2 and the closure of today's US session above. This will lead to the formation of an upward movement in the second half of this week. The probability of testing this model is still 30%, which makes it a support. It is also important to note that now the pair is trading at the level of the March high, which can serve as an additional obstacle to the growth rate.
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