Keeping the price above the weekly CZ 1.0786-1.0769 indicates the presence of demand from major players. In order for the bearish momentum to continue, it will be necessary to close today's trading below this zone. This will open the way for a retest of the March low in the near term.
The downward movement is still a priority until a reversal pattern is formed at a level not lower than the daily one.
An alternative growth model will develop if today's trading closes above yesterday's high. This will open the way for growth and a return to the lower limit of the average move of the previous week, located at the level of 1.0901. The probability of a return movement is high, so purchases will be profitable when you switch to the ascending model.
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