On Friday, an expiration of the option contract took place, which added volatility to the market. The engulfing pattern of the upward movement allowed the pair to once again test the determining support in the form of a week-long control zone of 1.1550-1.1532.
On Friday, there was an uptake of last week's growth, which indicates the formation of a medium-term accumulation zone. Today, the pair tested the weekly control zone fault of 1.1550-1.1532, which could lead to the appearance of large demand and retention of the instrument in the flat phase. To continue working in the range, it will be necessary to close today's American session above the level of 1.1537. If this happens, the target of growth will again be the a control zone at 1.1631-.1622, which will allow us to look for intraday purchases from the bottom of the range.
The continuation model of the fall has a probability of 50%. It will be developed in case the today's closing of the American session occurs below the level of 1.1537. The Breakdown of this mark will trigger a mechanism for depreciation, as the framework of the medium-term accumulation zone formed over the last two weeks will be breached. The next target of the fall will be 1/2 control zone of 1.1440-1.1431, the test of which will close a part of the short position.
The daytime CP is the daytime control zone. The zone formed by important data from the futures market that change several times a year.
The weekly CP is the weekly control zone. The zone formedby marks from important futures market which change several times a year.
The monthly CP is the monthly control zone. The zone is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com