The probability of a downward corrective movement has increased today. The first target of the fall is WCZ 1/2 0.6625-0.6618. The test of this zone will determine the upward momentum. If the test leads to an increase in demand and forms an absorption pattern, then this will provide an opportunity to buy the instrument.
Working within the accumulation zone is the basis for building a trading plan. Purchases after the test of WCZ 1/2 will need to be closed when retesting the weekly control zone
An alternative reversal model will develop if the closing of today's trading occurs below the WCZ 1/2. This will pave the way for a decline towards the weekly CZ 0.6550-0.6535. The bearish pattern will become the main one for the first half of next month.
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