Control zones for AUDUSD on 08/21/20
A medium-term accumulation zone continues to form for the fourth week. This allows you to consider purchases when testing the lower part of the range and selling when updating the monthly high. Working within the framework of a flat implies short profit taking on its borders.
The target for the upward movement is still the weekly control zone of 0.7308-0.7290. Yesterday’s purchases should be kept until the structure of the upward movement is broken.
The alternative option will develop if the closing of Asian or US trades occurs below the WCZ 1/2 0.7187-0.7178. This will allow you to review your trading plan and sell the instrument. The first goal of the decline will be a weekly 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.
The material has been provided by InstaForex Company – www.instaforex.com