At the beginning of this year, there was a sharp unexpected drop in the Australian dollar by 300 points within one hour. This puts some imprint on the models that will be traded soon.
The countdown in the construction of zones has to be taken from the low formed in early January. The current growth has already made it possible to work out the last fall and the pair continues to strengthen. The next medium-term goal is to take the weekly short-term order of 0.7207-0.7195. The movement to this zone will allow us to consider any reduction to find favorable prices for the purchase of the instrument. It is important to understand that the volatility of the first half of the month is determined, to a greater extent, the speculative component, so the main conclusions on trade directions will be made after the appearance of the main regulators.
On the higher timeframe, the situation is extremely rare and therefore incomprehensible to trade. The fall led to a move beyond the month of January CP in the first days of trading, but this exit was quickly blocked. Now the pair has gone beyond the limits of the upper monthly short circuit. It will be difficult to say whether compensation in the near future is due to the fact that it is not possible to calculate such situations and identify patterns.
At the beginning of this week, the upward movement remains a medium-term impulse, which allows you to either keep open purchases or look for favorable prices to open new long positions. To consider selling without forming a reversal pattern will be extremely risky, since such strong growth implies a continuation of the upward movement in most cases.
The material has been provided by InstaForex Company - www.instaforex.com