Control zones for NZDUSD on August 21, 2020

Yesterday's decline led to a test of two significant supports at once. The weekly CZ 0.6498-0.6483 coincided with the zone of the weekly average move, which led to a sharp increase in demand. It is important to note that the growth did not lead to the formation of a reversal model, so sales still remain relevant.

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If there are still short positions that are in breakeven, then you can continue to lead them. The most favorable prices for repeat sales are within the WCZ 1/2 0.6568-0.6561.

An alternative growth model will develop if the closing of today's trading occurs 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 50%, so it must be taken into account when building a trading plan within the day.

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Daily CZ - daily control zone. A zone formed by important data from the futures market that changes 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. A zone that reflects the average volatility over the past year.

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