Control zones for USDCAD on 05/11/20

The downward movement on the pair is a priority. Any growth must be used to find favorable selling prices. The first resistance will be WCZ 1/4 1.3990-1.3982. When testing this zone, it will be possible to enter a short position. The target of the downward movement is still the weekly control zone 1.3867-1.3839, you can consolidate a part of the profit when this is achieved.

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Work in the downward direction may become the main one in the first half of the week, however, it must be taken into account that the monthly control zone in May is below the April low, which could become an obstacle for further decline.

An alternative model for forming an accumulation zone will develop if today's trading closes above the WCZ 1/4. This will result in forming an accumulation zone, however, the bearish pattern will not be canceled yet. It is important to understand that any growth up to the WCZ 1/2 1.4074-1.4059 will be corrective and will also enable you to enter the sale.

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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