The close of last week's trading occurred above the middle turn zone, which indicates a 90% probability of returning to it. The upper limit of the zone is at the level of 1.1280, so a decline to this mark is most likely. Just below this level is the WCZ 1/2 1.1267-1.1259. As long as the pair is trading above the indicated zone, the upward movement will remain an impulse.
It is important to note that the rise on Friday occurred at the time when the option contract expired. This makes it insignificant and the probability of its absorption increases to 70%.
An alternative model will be developed if the pair can consolidate below the level of 1.1259 in today's US session. This will change the direction of trade in the current week. Selling will come to the fore, and the upward momentum can be considered complete.
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