The downward movement of last week led to the formation of a pattern of absorption at the medium-term level. This indicates a change in priority to descending, which makes it possible to search for favorable prices for the sale at any growth.
At the end of last week, the rate fell sharply by 2%, which led to a consolidation below the weekly short-term of 1.1631-1.1613. This fact indicates a high probability of continuing the fall. The nearest target for profit fixing is NKZ 1/2 1.1521-1.1512. Yesterday, the low resistance zone of NKZ 1/4 1.1620-1.166 was tested, which led to a sharp increase in supply. It does not make sense to consider purchases, as any upward movement will be corrective. Today, the nearest resistance will be NKZ 1/4 1.1615-1.1610.
Nothing prevents the instrument from continuing to fall from the current levels. The main plan is to hold a short position, opened at yesterday's test of the NKZ 1/4. In case of growth, you should pay attention to today's resistance zone for repeated sales.
To break the impulse structure, the absorption of yesterday's fall and closing above the level of 1.1615 in the US session will be required. This will open up opportunities to find more favorable prices for selling the instrument. The main resistance will be NKZ 1/2 1.1665-1.1656. While the pair is trading below the specified zone, the downward movement will remain a medium-term impulse. The test zone itself will allow you to get the most favorable prices for selling.
Day short - day control area. The zone formed by important data from the futures market, which change several times a year.
Weekly KZ - week control area. 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 -
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