Control zones for EURUSD on 08/21/20
The pair was corrected by 50% after forming the absorption pattern of the daily level. The main resistance for today is the WCZ 1/2 1.1902-1.1893. If testing this zone leads to forming a sell pattern, then the short position will come to the fore. The target of the fall is still the weekly control zone of 1.1784-1.1766.
Working in a range between two control zones implies partial profit taking at the lower border. Selling should be made only after an absorption pattern has formed not lower than the TF M30.
An alternative model will develop if today’s trading closes above the WCZ 1/2. This cancels the option to sell the instrument and allows you to search for purchases that will be aimed at updating the monthly high.
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