The closing of last week's trading occurred outside the middle course. This indicates a 90% probability of a return to the level of 1.2944. This makes it possible to obtain favorable sales prices with a high probability. On the other hand, sales from current marks are not profitable. The goal of the decline remains the weekly short-term limit of 1.2824-1.2786.
The return level of 1.2944 is near Friday's high, which makes this zone an excellent resistance. The test of this level must be considered for the appearance of the pattern of "absorption".
An alternative model will be developed if today's trading closes above Friday's high. This will allow you to form a deeper correction and the pair will go into the accumulation phase. The defining resistance will be Weekly Control Zone 1/2 1.3089-1.3070. The downward movement will remain a medium-term impulse as long as the pair is trading below the specified zone.
Daily CZ - daily control zone. The zone formed by important data from the futures market that changes several times a year.
Weekly CZ - weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.
Monthly CZ - monthly control zone. The zone that reflects the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com