Today's growth in the Asian session indicates the absence of a large cluster of limit orders above the a WCZ of 109.98-109.89. The probability of further growth is 70% with the first goal at the weekly CZ of 110.94-110.77. It is important to understand that purchases from current rate will be less profitable than those that can be opened after a corrective decline in the pair.
The nearest support will be the 1/4 WCZ of 109.88-109.85, where a test of which will provide an opportunity to enter the purchases. The zone is within the average daily run, therefore, the entry can be made with a limit order.
An alternative model will be developed if the pair continues to grow from the current levels and reaches a weekly control zone without corrections. In this case, you need to search for the pattern of "false breakdown" and the entrance to the downside after the WCZ test. It is important to understand that the bearish impulse is still a priority in terms of the medium-term movement.
Daily CZ - daily control zone. The area formed by important data from the futures market, which changes several times a year.
Weekly CZ - weekly control zone. The area formed by marks from the important futures market, which changes several times a year.
Monthly CZ - 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