The downward medium-term model remained unfinished last week. Today the pair is testing the first resistance zone, which can cause the downward movement to resume. To sell the instrument from WCZ 1/4 107.00-106.91, it is necessary to form an Absorption pattern at the hourly level or higher. If this happens, then the target of the downward movement will again be the weekly control zone 105.69-105.33.
Work in a downward direction remains a priority, so any growth should be considered for forming a pattern to sell.
An alternative model will develop if today's trading closes above the WCZ 1/4. This will pave the way for a deeper correction model. The growth target will be WCZ 1/2 108.02-107.83, where the most favorable prices for selling the instrument are located.
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