Last week, the downward movement of the pair resumed, which allows you to keep sales open after testing the 1/2 control zone of 0.7246-0.7239. It is important to note that the pair has already overcome the monthly average.
The downward movement remains a priority in the medium term, but at the end of last week, there was a test of the monthly CZ of December. This suggests the emergence of demand and stops the decline. In case of going beyond the monthly CZ, the probability of returning to its limits is 90%. This suggests the need to find a buying pattern and close most of the sales or completely liquidate a short position.
Today, the December futures contract will expire, which could be the reason for changing the current downward phase. It will be possible to buy from the current marks if the reversal pattern is formed on a lower timeframe.
A downward movement is impulsive in nature, which indicates the need to hold a short position or part of it. The goal of the fall is the weekly CZ of 0.7133-0.7120. Upon reaching the specified zone, the pair will go beyond its monthly course. It is best to close all sales within the specified zone. If today's growth can absorb Friday's fall, purchases will come to the fore, as a reversal pattern will be formed.
Daily CZ - daily control zone. The area formed by important data from the futures market that change several times a year.
Weekly fault - weekly control zone. The area formed by marks from important futures market which change several times a year.
Monthly fault - monthly control zone. The area is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com