FX.co ★ Control zones NZDUSD 01/16/19

The pair has been trading for the second week within the monthly CP of January. This increases the likelihood of a downward correction or reversal movement. The first signs of the proposal are already visible.

The test of the monthly CP of January led to the appearance of a major offer. Today, a model is being formed that could be turning in the medium term. This will require the closure of US trading below the current level. If the price is kept below the NKZ 1/2 0.6778-0.6771, the next target zone will be the weekly KZ 0.6708-0.6694. Sales opened after a false breakout of the February 15 high can be transferred to breakeven and partially fixed in order to be able to top up the position in case of a corrective movement.

Today, the fate of the upward momentum will be decided. In case of closing of the US session below the level of 0.6771, further downward movement will be a priority for the second half of the week.

In order for the upward movement to resume, it will require the emergence of strong demand, which will allow the price to close above the NKZ 1/2 at today's close of trading in Chicago high will be the growth target again. Until the close of trading, the probability of downward and upward movements is about the same. For those who hold sales, the best option would be to continue to decline.