Yesterday's closing of the American session occurred below the 1/2 CZ of 1.2034-1.3005. This indicates a change of priority to downward. Any growth must be used to find favorable prices for the sale of the instrument. It is important to understand that the weekly CZ of 1.2832-1.2793 is now the medium-term target. The probability of the testing this zone is 70%, which allows you to search for sales above current marks.
It is important to note that at a distance of 70 points below the current price is the zone of the average progress for the current week. A test of this zone can lead to a halt of the fall until Friday, hence, it is worth considering with caution on sales below yesterday's low.
An alternative model will be developed if yesterday's fall is absorbed by growth, and the American session closes above the level of 1.3030. This will allow considering the formation of a local accumulation zone. The new target for the work will be the a CZ formed from today's minimum. This model is not a high probability but it must be considered as an auxiliary.
Daily CZ - daily control zone. The area formed by important data from the futures market that change several times a year.
Weekly CZ - weekly control zone. The area formed by marks from important futures market which change 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