Last week, the pair tested the monthly short-term of December. This increases the probability of demand and the formation of a reversal upward model on a lower timeframe.
The pair is trading within the monthly short-term of December, which makes further decline less likely. A short position opened earlier must be closed completely or partially. The remaining part is required to be transferred to breakeven in case of a formation of a deep correction model. The current position of the price makes it possible to consider purchases when forming a corrective or reversal model in the short term.
At the moment, the downward movement remains a medium-term impulse. This does not allow for purchases from the current marks. Finding the pair within the monthly short-term makes sales unprofitable. This makes it possible to refrain from opening positions at current prices.
The probability of further decline of the pair is low, so sales from the nearest resistance zones are not profitable. The main resistance this week is ncz 1/2 0.6779-0.6772. While the pair is trading below the specified zone, the downward movement will remain impulse. Breaking the structure will require the closure of today's US session above 0.6779. This will allow you to look for favorable purchase prices in the medium term.
Day short - daily control zone. The zone formed by important data from the futures market, which change several times a year.
Weekly KZ - weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.
Monthly KZ - 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