The fall of the pair allows you to keep sales open after January 9, when the pair formed a reversal downward pattern. The target of the fall is still the weekly control zone of 1.2900-1.2862. A test of the indicated zone will be decisive for further movement. Part of the short position can be closed, and the remaining volume transferred to breakeven. The next medium-term goal will be a return to the monthly control zone of October at 1.2725, to which the pair had gone beyond last year.
It is important to understand that it is better not to make purchases without the formation of a fase breakout or absorption pattern at this stage.
An alternative model of deep upward correction will be developed if the pair can absorb yesterday's fall. This will allow you to find better prices for selling the instrument. The first resistance zone will be WCZ 1/4 1.3065-1.3056, the test of which will make it possible to sell the instrument again in the direction of a bearish medium-term impulse.
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 zone formed by important marks of the futures market, which changes 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