The pair tested the WCZ 1/2 0.9154-0.9141 last week, which led to the formation of an accumulation zone. The downward impulse remains a priority, however, the formation of a flat may become the first stage for a deeper corrective growth. To break the formation, it is necessary to close today's trading above the WCZ 1/2.
If this happens, purchases will come forward, and the growth target will be the weekly CZ 0.9304-0.9276.
To continue the formation of the accumulation zone, it is necessary to form an "absorption" pattern by retesting the WCZ 1/2. This will allow us to sell the pair with the goal of retesting the monthly low and let the pair further decline. The probability of implementing the ascending and descending patterns is approximately the same, so both patterns should be considered as part of the daily trading plan.
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