Control zones of USD/CAD on 03/05/20

Yesterday, the pair tested the upper border of the average weekly move, which made it possible to fix the next part of purchases. At the same time, there was no structural violation, and thus, it is necessary to consider the pattern for selling the instrument today when testing the important resistance of the Weekly Control Zone 1/2 1.3401-1.3394. If the closing of trading occurs below this zone again, then the main target of the decline will be the weekly control zone 1.3303-1.3287.

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Developing within the medium-term accumulation zone is profitable and today, the pair is trading at its upper border. This makes it possible to talk about the profitability of sales.

An alternative model will be developed if the closing of today's trading occurs above the level of 1.3401. This will open the way for further growth and retest of the annual maximum formed on February 28. It is also important to understand that such an increase will increase the probability of a downward corrective movement in the future up to 90%, since the pair will go beyond the limits of the weekly average move.

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Daily CZ - daily control zone. The 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. The zone that reflects the average volatility over the past year.

The material has been provided by InstaForex Company - www.instaforex.com