On Friday, there was a test of weekly control zone, indicating the implementation of a downward priority model. On the same day, a strong growth followed, which led to the absorption of Thursday's fall.
Friday's upward movement led to the formation of an engulfing pattern. This happened after testing the weekly control zone, which can serve as the first impetus for the formation of a reversal upward pattern. The a control zone is the determining resistance and the upper limit of which is located at 1.1525. If the pair continues to trade below this mark, the downward movement will resume and the first target of the decline will be at least last week.
The above model is still a priority since the closing of last week's trading occurred below the level of 1.1525. This does not allow considering the purchase.
Ending the downward movement will require the closure of today's trading above 1.1525 level. This will open the way for growth to a weekly control zone in the short term. In the case of the implementation of this plan, all remaining sales will have to be closed, and tomorrow, they will consider purchases with any depreciation.
The material has been provided by InstaForex Company -
www.instaforex.com