The pair's decline which occured today is a logical continuation of the test weekly CZ 0.7014-0.7001. Since a consolidation above the zone did not happen, the weakening of the Australian dollar at the beginning of the current week became logical. The first target of the fall is the WCZ 1/2 0.6955-0.6948. If the pair remains above the specified zone, the upward movement will resume, and the update of the monthly high will be the first goal.
It is important to understand that the last four days the accumulation zone is forming. Work in this phase implies searching for favorable prices for buying and selling from the limits of the range.
In order to cancel the upward impulse and resume the fall, you will need to close today's trading below 0.6948. If this happens then there will be an update of the low of June with a high degree of probability, and the fall target will be the weekly CZ 0.6887-0.6874. The probability of moving to the May low will increase significantly.
Daily CZ - daily control zone. The area formed by important data from the futures market, which change 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. 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