The emergence of demand after the test weekly KZ 1.2996-1.2958 suggests that the previous downward cycle can be considered complete. For further decline, you will need to get better prices, where you can again look for patterns for selling the instrument. The first resistance is the NKZ 1/4 1.3081-1.3072, the test of which might be decisive for the downward movement.
The determining resistance for the entire downward impulse is the NKZ 1/2 1.3187-1.3168. As long as the pair is trading below the zone, the probability of a retest of the March low is at 70%.
In order to violate the downward impulse, it will require the closure of one of the US sessions above the level of 1.3187. If this happens, sales will become secondary, and they will have to be abandoned. Today, the NKZ 1/2 is outside the daily average, which does not allow it to be used in trading, however, it is necessary to take it into account for work this week.
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