The upward movement remains a medium-term momentum. Today the further priority will be determined. If the WCZ 1/2 1.2979-1.2960 acts as a resistance and the pair will not be able to gain a foothold above it, then the downward movement will become the main one, and the first target of the decline will be the upper limit of the monthly CZ of October 1.2725.
Just above yesterday's high is the October extremum. A test of this level can cause a large offer to appear. This needs to be taken into account in today's trading plan.
An alternative model will be developed if today's closing of the US session occurs above the WCZ 1/2. This will open the way for further growth with consolidation above the October maximum. It is important to understand that the test of significant extremes, in most cases, leads to the formation of "false breakdown" patterns.
Daily CZ – daily control zone. A zone formed by important data from the futures market that changes several times a year.
Weekly CZ – weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.
Monthly CZ – monthly control zone. A zone that reflects the average volatility over the past year.