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Control zones for USD/CAD pair on 05/24/19
Yesterday’s growth of USD/CAD pair led to a breakdown of significant resistance by the 1/2 WCZ of 1.3470-1.3459, which indicates an increase in the likelihood of further growth if we manage to stay above the zone in today’s US session.
The pair continues to form a medium-term accumulation zone throughout May. Today, a test of the upper border of the flat takes place, which can lead to the formation of a correctional model and a decline to yesterday’s minimum. This model is a priority since the zone of the average weekly move was tested and growth stopped. The likelihood of closing trades within the middle move zone is 70%, thus sales from current levels are more profitable. It is necessary to form a “false breakout” pattern to enter a trade.
Work within the accumulation zone indicates the need to close all purchases as the upper limit of the range has been tested. The goal of a short position will be at least the current week.
An alternative model will be developed if the close of today’s trading occurs above the weekly average trading area. This will allow starting work on Monday to return to this zone. The probability of return will increase to 90%, which will make sales even more profitable.
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 area formed by marks from the important futures market, which changes several times a year.
Monthly CZ – monthly control zone. The area is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company – www.instaforex.com
