Control zones for NZDUSD on 08/13/2020

The resumption of the pair's fall is a logical continuation of the descending medium-term model. The first goal of the decline is the weekly control zone of 0.6537-0.6522, which has already been tested. yesterday. To continue the fall, it will be necessary to close today's trading below the weekly control zone. This will open the way for the formation of a reversal model of the higher timeframe.

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The movement of the last four days indicates the presence of interest from large sellers. While the pair is trading below the WCZ, it does not make sense to talk about a reversal.

An alternative growth model will be developed if today's trading closes above the WCZ 1/2. This will open the way for growth and updating the monthly maximum. The probability of development of this model is 30%, which makes it auxiliary.

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Daily control zone. A zone formed by important data from the futures market that changes several times a year.

Weekly control zone. The zone formed by important marks of the futures market, which change several times a year.

Monthly control zone. A zone that reflects the average volatility over the past year.

The material has been provided by InstaForex Company - www.instaforex.com