Control zones USDCAD 10/10/19

Yesterday's move may be decisive for next week. Closing trades below WCZ 1/4 1.3303-1.3299 indicates an increase in the likelihood of a decline to 70%. The purpose of the fall is WCZ 1/2 1.3259-1.3250. Testing this area will close part of the sales. The rest should be transferred to breakeven in case of continued downward movement.

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The medium-term outlook for the decline can be assessed as updating the October low. This model will become relevant if the pair consolidates below the WCZ 1/2.

An alternative growth model will be developed if the pair stops at WCZ 1/2 and a false breakout pattern is formed. This will lead to a sharp increase in demand and the resumption of upward movement. This model should be considered along with the bear one.

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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