The upward movement is a medium-term impulse, so part of the long position can be held. There are no serious resistance levels on the way of growth, so the formation of a reversal model will require the formation of an accumulation zone of a weekly level or higher. Purchases at any decline look beneficial from the lower control zones.
It is important to understand that the most favorable purchase prices are within the WCZ 1/2 1.3149-1.3140. The test of this zone will be decisive for the entire upward movement.
An alternative model will be developed if the pair does not form a correctional decline, but immediately breaks the weekly control zone 1.3231-1.3213 and consolidates above it. Purchases from current marks are not profitable, so the only plan will be to retain previously opened purchases.
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 USDCAD 11/11/19