Yesterday, the pair settled above the weekly control zone of 1.3231-1.3213. This confirms the strength of the upward movement. For purchases, a correctional reduction to one of the correctional zones is required. The nearest support is WCZ 1/4 1.3223-1.3220. The target zone is WCZ 1/2 1.3328-1.3319.
The closing of the last trading sessions indicates a constant increase in demand. This makes it possible to hold previously opened purchases.
The alternative model will be developed if the update of yesterday’s high causes a strong increase in supply. The close of trading should occur below the WCZ 1/4. This will indicate the transition of the instrument to the accumulation phase, where the main support will be the WCZ 1/2 1.3180-1.3171.
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.
The material has been provided by InstaForex Company – www.instaforex.com
Source:: Control zones USDCAD 11/14/19