Control zones for USDCAD on 04/13/20

The downward movement is still a priority, since the pair consolidated below the weekly control zone of 1.4037-1.4007. This indicates a continued fall. It should be noted that this output made it possible to test the monthly control zone in April again. According to statistics, going beyond the monthly control zone leads to a return to its limits with a probability of 90%. Therefore, selling from current marks is not profitable and the likelihood of continuing to move in a narrow range increases.

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The probability of corrective growth will increase after updating the monthly low and testing the 1.3910 level. This will make it possible to continue working within the accumulation zone formed over the past two weeks.

An alternative model will develop if the pair can consolidate below the 1.3910 level and continue to decline. This will provide an opportunity to buy at better prices in the future. Selling is not profitable, as already described above, so you should consider the option of a false breakout of the monthly low in order to purchase the instrument.

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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 zone formed by important marks of the futures market, which changes 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