Today, the pair is testing the 1/2 control zone and defines the resistance of 0.9775-0.9765. In the case of the formation of a “false breakdown” pattern, the downward movement will again become a priority. It is better to refrain from sales since the instrument is located within the lower monthly control zone. The probability of earning beyond the average move is below 70%, which makes short positions unprofitable.
In the event of a decrease and retention of the price below 1/2 WCZ, it is better to find more favorable prices for the purchase of the instrument if a decrease occurs.
An alternative model for changing the downward priority to the upward one will be formed if the closing of today’s US session occurs above the level of 0.9775. This will allow you to search for purchases with any decrease with the probability of updating the week’s high above 70%. It is important to understand that the breakdown of the 1/2 WCZ will lead to testing the zone of the average weekly move and in most cases, it will cause the growth to stop until the end of the current week.
Daily CZ – daily control zone. The area formed by important data from the futures market, which changes several times a year.
Weekly CZ – weekly control zone. The area formed by marks from the important futures market, which changes several times a year.
Monthly CZ – monthly control zone. The area is a reflection of the average volatility over the past year.