Yesterday's decline led to a test of two significant supports at once. The weekly CZ 0.6498-0.6483 coincided with the zone of the weekly average move, which led to a sharp increase in demand. It is important to note that the growth did not lead to the formation of a reversal model, so sales still remain relevant.
If there are still short positions that are in breakeven, then you can continue to lead them. The most favorable prices for repeat sales are within the WCZ 1/2 0.6568-0.6561.
An alternative growth model will develop if the closing of today's trading occurs above the WCZ 1/2. This will open the way for growth and updating the monthly maximum. The probability of development of this model is 50%, so it must be taken into account when building a trading plan within the day.
Daily CZ - daily control zone. A zone formed by important data from the futures market that changes several times a year.
Weekly CZ - weekly control zone. The zone formed by important marks of the futures market, which change several times a year.
Monthly CZ - monthly control zone. A zone that reflects the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com