Today, the test of NKZ 1/2 0.7078-0.7071 takes place, which is the defining resistance. Holding the price below the specified zone will provide an opportunity to enter a short position. It is worth noting that a false breakdown pattern has been formed on the higher D1 timeframe, which increases the likelihood of continuing an upward movement and a return of the price to the opening level of March trading.
Do not rush to make decisions for selling. It is necessary to wait for a suitable pattern, since the movement of the lower time frame indicates the presence of demand at the level of trading in yesterday's Asian session.
An alternative model will be developed in case the pair breaks through the NKZ 1/2, and that the closure of today's US session will occur above the level of 0.7078. This will open the way for growth to a weekly KZ 0.7153-0.7139. This model will become relevant at tomorrow's Asian session. Purchases without consolidation above the NKZ 1/2 are not profitable, therefore, confirmation is required to trade in the direction of growth.
Daily KZ - daily control zone. The zone formed by important data from the futures market, which change several times a year.
Weekly KZ - weekly control zone. 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 - www.instaforex.com