Yesterday's fall of the pair led to the formation of the session absorption pattern. This allows us to continue working in a downward corrective direction. It is important to understand that today is the last day of January, which will indicate a possible easing of pressure at the level of the monthly average. The current position of the price indicates the formation of a weekly accumulation zone, where support/resistance levels are weekly extremes.
The main target for the downside movement is the NKZ 1/2 0.9891-0.9881. A test of this zone will indicate further priority. To resume growth, this will require the emergence of a strong demand when you hit the zone.
The sharp appreciation of the franc indicates a high probability of continuing the downward movement, which may develop into a medium-term momentum. Today, it is possible to sell the instrument after a corrective growth, which will be aimed at returning to the opening point of yesterday's trading. If this happens, the short position will come to the fore.
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