Yesterday, the closing of the American session occurred below the 1/2 WCZ of 0.6618-0.6612. This indicates a change in the direction of trade and sales came to the fore. The first goal of the decline will be the weekly CZ of 0.6558-0.6546, which coincides with the range of the average progress of the current week from purchases must be completely abandoned.
When considering the movement of a higher timeframe, you can see a medium-term fall, which occurred in April and May. If this movement continues from the current levels, the main goal of the decline will be the May minimum.
An alternative model will be to fall from current levels without forming a correctional model. If this happens, it will be difficult to sell the instrument since the ratio of risk to profit will not be profitable. For sales, you need to get better prices. One of the options for buying a tool can be a quick test of the weekly control zone, as this will lead to the emergence of strong demand in most cases.
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 area formed by marks from the important futures market, which changes several times a year.
Monthly CZ - monthly control zone. The area is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com