Yesterday, an important resistance zone was tested, which allows us to consider the formation of a reversal pattern. A downward movement will be considered complete if the close of today's trading is higher than the opening.
Yesterday, the pair tested the defining zone of resistance of NKZ 1/2 1.1316-1.1307. Today, there is an attempt to consolidate above it. If this happens, then the next goal of growth will be the weekly CP 1.1418-1.1399. This requires the closure of today's US session above 1.1316. The last fall was pulsed, so the probability of updating the November low in the medium term still exists.
Purchases from the current grades are not profitable, so waiting for favorable prices is the best strategy for today. More so, continued growth may require additional efforts on the part of buyers which will make it possible in the future to find the optimal moment for opening a long position.
The continuation of the downward movement has become less likely and from that, it is also less profitable. This requires the closure of all sales that were open last week or current week. Repeated sales will be possible only if the closure of today's American session happens below 1.1316. This will provide opportunities for profitable short transactions, the goal of which will be again the November minimum.
Daily CZ - daily control zone. The area formed by important data from the futures market which change several times a year.
Weekly fault - weekly control zone. The area formed by the important marks of the futures market which change several times a year.
Monthly fault - 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