The downward movement on the pair is a priority, despite strong news growth on Friday. Consolidation above WCZ 1/2 1.3254-1.3245 did not occur, therefore, it is necessary to work in the continuation of the bearish impulse. The first goal of the fall will be the zone of the average weekly move, which coincides with the December low.
It is important to understand that the probability of updating the December low is at 75%, so short transactions with a risk to reward ratio of 1 to 3 and higher are the main ones this week.
To cancel the downward model and close all sales, it will be necessary to consolidate above the level of 1.3254 at today’s US session. This will provide an opportunity to review the trading plan and start buying the pair. The first growth target will be the November high.
Daily CZ – daily control zone. The area formed by important data from the futures market, which change several times a year.
Weekly CZ – weekly control zone. The zone formed by important marks of the futures market, which change 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
Source:: Control zones of USDCAD 12/10/19