Control zones of USD/CAD pair 01/24/19

After a two-week exit beyond the monthly CZ of January, the pair returned to its limits, which indicates the need to keep open purchases and consider new ones in the event of a decline.

The upward movement of the pair is a weekly impulse. The fixation above 1/2 CZ of 1.3290-1.3279 allowed to open a long position. Yesterday's testing of 1/4 CZ of 1.3307-1.3302 made it possible for those who work more conservatively to enter. The purpose of the growth is the weekly CZ of 1.3402-1..3382. Achieving this zone will allow you to close most of the purchases and consider the option of forming a reversal model in the event of a large offer.

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Purchases from current levels are not profitable, since the model is already realized by 90%. On the higher timeframe, the downward movement still remains a long-term impulse.

An alternative model should be considered in case the pair can break through and consolidate above the level of 1.3402 at one of the US sessions. This allows considering of a medium-term change of movement to ascending. The probability of implementing this model is 30%, thus, without confirmation of the purchase at the highs of the current week are an unprofitable investment.

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Daily CZ - daily control zone. The area formed by important data from the futures market that change several times a year.

Weekly CZ - weekly control zone. The area formed by marks from important futures market which change 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