Yesterday’s growth led to the formation of the absorption pattern on the daily chart and consolidation above the NCH 1/2 1.3365-1.3354. This indicates a resumption of upward medium-term growth.
Yesterday’s breakout and consolidation above NKZ 1/2 suggests the need to abandon the short position and consider buying today’s volatile trading sessions. The first support act NKZ 1/4 1.3866-1.3860. The test of this zone will allow you to open a purchase with a stop of no more than 30 points. The potential profit will be 90 points, since the target zone is the weekly short-period 1.3478-1.3458.
Defining support for upward momentum becomes NKZ 1/2 1.3314-1.3303 formed from yesterday’s high. The test of this zone will allow you to get the most favorable prices for the purchase of the instrument.
To cancel the upward movement, it will be necessary to absorb yesterday’s growth and close trading below the level of 1.3303. The probability of this event is less than 30%, which makes this plan auxiliary. It is better to refuse selling of the tool. It is important to note that in case of opening a long position on the path of growth of the pair, a weekly average move will act. The test of this zone with a high probability will lead to the appearance of a large proposal. It is important to note that the target weekly short-circuit coincides with the mid-range zone, which makes this range a strong medium-term resistance.
Day short – daily control zone. The zone formed by important data from the futures market, which change several times a year.
Weekly KZ – weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.
Monthly KZ – 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 11.12.18