Downward movement on the pair is still a priority. The probability of updating the January minimum is 70%. In order to break this impulse, it will be necessary to fix the price above yesterday's maximum.
Today, the pair forms an upward correctional movement. In the second half of the European session, testing the 1/4 CZ of 1.1340-1.1336 takes place. This zone can act as resistance, therefore, it is necessary to track the formation of a pattern for sale. The most favorable prices for sale are within the 1/2 CZ of 1.1391-1.1382. Testing this zone will allow you to make sales at an excellent risk to reward ratio.
Yesterday's movement was provoked by the news, therefore, you may need a deep corrective movement to continue the fall. Therefore, you need to go on sale only after the reversal pattern has been formed.
To end the downward impulse requires the closure of today's US session above 1.1391. If this happens, then on Monday, it will likely consider purchases with medium-term goals. Today, the probability of formation of this model is 30%, so the purchases are not profitable. Without a pattern of false breakdown or absorption, a downward impulse reversal will not occur.
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 -
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