Last week's movement is impulsive. The closing of trading took place near the monthly short-circuit, which indicates a high probability of demand in case of an early test zone.
Last week there was a strong fall of the pair by 2.5% from the high of December. This suggests that the bearish momentum will continue in the medium term. The main support this month will be the monthly KZ of December. If the pair tests this zone, the probability of demand will be 70%. This should be taken into account when building a medium-term trade plan.
Intraday trading also implies a search for profitable prices for selling the instrument. The determining resistance is the NKZ 1/2 0.7259-0.7253. While the pair is trading below this zone, the bearish momentum will remain a priority. The targets for the reduction are within the weekly CP of 0.7133-0.7120. Achieving this zone will provide an opportunity to close most of the sales. It is better to abandon purchases until one of the significant resistance zones is broken. This will protect against premature inputs against a strong medium-term impulse.
Day short - daily control zone. The zone formed by important data from the futures market, which change several times a year.
Weekly KZ - weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.
Monthly KZ - 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