To further reduce the pair, it is required to keep the price below 1/2 WCZ of 0.6551-0.6545 at today's American session. If closing is lower, the probability of updating the weekly low will remain above 70%. It is important to note that the pair was already falling to an annual low last week, which led to a sharp increase in demand.
Today's morning surge in volatility allowed us to work out the average daily move in the direction of strengthening the pair. Thus, the probability of staying within it without breaking the structure is higher than the probability of a pair reversal.
An alternative model will be developed if the closure of today's US session occurs above the level of 0.6551. This will open the way for growth to the average course of the week and weekly CZ of 0.6617-0.6605 in the medium term. Purchases will come to the fore at tomorrow's Asian session. When opening a long position, it is important to remember that there is a significant target level of 0.6661 and the probability of a return to which is very high.
Daily CZ - daily control zone. The area formed by important data from the futures market, which changes several times a year.
Weekly CZ - weekly control zone. The area formed by marks from the important futures market, which changes several times a year.
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