Work in the downward direction is moving to the medium-term level, however, yesterday the pair reached the range of the average weekly progress. Sales from the current marks are not profitable. For this reason, it is necessary to exit the short position and wait for more favorable prices to open new sales. Purchases are possible from the current levels and below in case the "false breakout" pattern is formed. This will determine the size of the stop and take corrective upward movement.
It is important to note that the downward movement is strong enough. This indicates a high probability in the medium term to repeatedly update the local lows of the month.
The alternative model will be developed if the downward movement continues and today's trading closes below 0.9901. This will increase the probability of forming a corrective upward model to 90%. This should be used through the pattern of "false breakout" of the previous day's minimum.
Day CZ - daily control zone. An area formed by important data from the futures market that changes several times a year.
Weekly CZ - weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.
Monthly CZ - 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