The growth of the pair has doubled the average weekly range of movement over the past two days. Such impulses rarely occur on the market, so you need to be careful when making trading decisions. The continuation of growth in the medium term is a priority, however, buying from current levels is not recommended, as the pair is outside the zone of the average weekly range and close to the main weekly control zone 109.90-109.69.
Sales from a weekly control zone are possible in the case of the formation of a "false breakdown" pattern of yesterday's maximum. Thus, it is necessary to take into account the fact that there is a maximum of December within the weekly control zone, which coincides with the November extremes. This can all become a strong resistance zone.
An alternative model of the continuation of growth has a low probability, however, such a sharp increase in demand can lead to aggressive purchases if today's trading closes above the weekly control zone. This will indicate a huge interest on the part of market buyers, which will block a large accumulation of limit orders for sale.
Daily CZ - daily control zone. The zone formed by important data from the futures market that changes several times a year.
Weekly CZ - weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.
Monthly CZ - monthly control zone. The zone that reflects the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com