The movement last Friday was the first impulse recorded after the long weakening of the loonie. If today's WCZ 1/2 test 1.3890-1.3880 leads to an increase in supply and the formation of a sell pattern, then short trades will be popular. The first target of the decline will be 1.3631, the zone of the average course of the previous week. The probability of a rollback here is quite high.
Working downwards will allow you to get more than 200 points of profit, so the stop loss should not exceed 65 points.
Meanwhile, an alternative growth model will develop, if the pair fixes above the WCZ 1/2. It will lead to the resumption of the upward movement, and the probability of updating the monthly maximum will increase again to 75%. Note that purchases from the current levels are not profitable, as the pair is trading near the weekly average move zone.
Daily CZ - Daily control zone. The area formed by important data from the futures market, which changes several times a year.
Weekly CZ - Weekly control zone. The area formed by important marks of the futures market, which changes several times a year.
Monthly CZ - Monthly control zone. The area that is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com