The downward movement on the pair is a medium-term impulse. This makes it possible to keep sales open from WCZ 1/2 1.1164-1.1157 to the December low. This goal is medium-term, so part of the position can be consolidated after updating the January low. This is necessary in case of the appearance of large demand after an extreme test and the formation of a correctional upward model.
The next target after updating the January low and consolidating below it will be the WCZ 1/2 1.1010-1.1003. These are the levels for possible sales commits that have been converted to breakeven.
An alternative model will be developed if the closing of trading on Monday occurs above the opening after updating the monthly low. This will allow you to create a False Breakdown pattern and Absorption of the session level. In this case, corrective purchases will come to the fore.
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 zone formed by important marks of the futures market, which changes 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