The downward movement became impulsive due to the fact that the pair overcame the distance equal to the weekly short-term. Any upward movement within the lower control zones will be considered corrective and will make it possible to achieve favorable prices for selling the instrument. It is important to note that the fall was stopped due to the approach to the average weekly move, which coincides with the weekly CP of 1.1330-1.1311. As long as this range remains supported, the probability of forming an upward corrective movement is high.
Today there will be an expiration of option contracts, which suggests an increase in daily volatility. This may be the reason for the rapid implementation of both priority and alternative models.
A less likely model for today will be the continuation of a fall without the formation of a corrective movement. Confirmation of the strength of the downward movement will be the close of weekly trading below 1.1311. This will lead to a continuation of the bearish mid-term impulse and will not make it possible to sell the instrument, as the pair is trading within an average weekly move.
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