This morning was marked by the test of NKZ 1/2 0.6714-0.6707. This zone has been identified as an important target and support. The emergence of demand for this zone indicates the presence of large limit orders. Purchases after the formation of a "false breakdown" pattern must be partially consolidated after absorbing the fall of Thursday. The rest can be moved to breakeven and left for next week.
Until there has been a violation of the downward impulse, the work is carried out within the medium-term accumulation zone. The main target for growth is NKZ 1/2 0.6787-0.6780.
A cancellation of the upward movement will occur if the closure of today's US session occurs below the level of 0.6707. This will speak about the emergence of a large market seller who will be able to disassemble limit purchase orders located within the NKZ 1/2.
Daily KZ - 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