While the pair is trading below the WCZ 1/2 1.3490-1.3479 the downward movement remains a priority. The absorption pattern should form on the daily timeframe in order for the fall to continue. The formation of a local accumulation zone will take place, where buyers and sellers agree to work within the framework of a flat.
Working in flat involves finding favorable prices for buying and selling the instruments from the border. The upper limit is within the WCZ 1/2, and the lower limit is the low of the current week.
To break the flat structure, it will be necessary to close today's US session above the level of 1.3490. This will allow you to look for purchases from the beginning of next week. The probability of getting out of a flat still does not exceed 50%, which requires that you search for a pattern for selling on the upper limit.
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