At the end of last week, the pair went beyond the average weekly move, which indicates the strength of the upward movement. However, it is important to understand that the probability of a return to the breached zone has increased to 90%. When building a daily plan, it is important to take this fact into account, as this will make it possible to obtain more favorable prices for purchasing.
There is not much left to the target zone of WCZ 1/2 0.6870-0.6864, so its test will be decisive for further movement. If the test leads to the formation of a "false breakout" pattern, then this will indicate the beginning of the formation of the correctional model.
The main support on Monday will be WCZ 1/2 0.6799-0.6793. After returning to the range of the average course of the previous week, this zone will be decisive for the entire upward impulse. If the pair continues to trade above it, then the monthly high will be updated several more times.
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