The upward movement remains an impulse, therefore the important level of support is the a CZ 1.1422-1.1413. The test of the specified zone should be considered for the appearance of demand and the pattern for purchases. If this happens, the first goal will be the maximum of last week. Further targets will be measured from the weekly CZ of 1.1492-1.1474, hence, the ratio of risk to profit of a long position will be profitable.
The last impulse movement started from the current levels, therefore, prices below 1.1433 are in the zone of limit orders. Until these orders are removed, the downward movement will stop.
To break the upward momentum, it is necessary to close today's American session below 1.1413. When this happens, the decline to the weekly CZ of 1.1330-1.1311 will come to the fore. This will allow you to look for favorable prices for sales in tomorrow's European session. It is important to understand that changing the direction of the trend will oblige to close all long positions opened last week.
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