To continue the growth and retest the weekly control zone of 0.6506-0.6494, it is enough to keep the price above the level of 0.6430. Yesterday's purchases from WCZ 1/2 0.6436-0.6430 must be transferred to breakeven, as today's decline may lead to a change in dynamics. It is important to understand that the downward movement is a medium-term impulse, so the probability of its continuation is still above 70%.
Work within the framework of the flat implies searching for deals at the boundaries of the range, which are very clearly visible at the levels of opening and closing of daily trading for the last five days.
An alternative model for continuing the medium-term decline will be developed if the closure of today's US session occurs below the level of 0.6430. This will open the way for a further fall to a monthly low. The probability of implementing this model is above 50%, so it must be taken into account when building a trading plan.
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