Last week's close was at the lower limit of the weekly control zone of 1.2380-1.2337. This makes it possible to consider a corrective upward model that will allow you to re-enter sales. The nearest resistance is WCZ 1/4 1.2432-1.2422. When testing this zone, you need to concentrate on finding the absorption pattern.
The pair has been trading in a downward momentum for the third week, which makes it possible to hold short positions. This does not prevent adding volumes in the direction of pulling down the instrument.
To break the downward momentum and switch to medium-term accumulation, it will be necessary to close today's trading above 1/4 WCZ. This will allow us to consider corrective purchases at tomorrow's European session. It is important to understand that the probability of a reversal of the pair does not exceed 25%, which suggests a high probability of a re-test of last week's low.
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 zone formed by important marks of the futures market, which changes several times a year.
Monthly CZ - monthly control zone. The zone, which is a reflection of the average volatility over the past year.
