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22.04.2019 05:22 AM
Control zones USDCAD 04/22/19

Today's movement in the Asian session confirms the continuation of the formation of an accumulation zone, which is decisive in the current month. Appearance of the offer occurred after the CZ 1/2 1.3386-1.3375 test. This gives you the opportunity to look for sales, the purpose of which will be the lower CCP 1/2 1.3297-1.3287. Working in this direction several times already has brought profit this month, so without disrupting the structure, it is worth considering the continued development of the flat-like model.

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The movements in April seem to be directional, but they are not an impulse, which led to a decrease in weekly volatility from 170 to 160 points. This suggests that in the event of an exit from the flat, this will happen rapidly and will lead to the formation of a medium-term impulse. The pair will be able to go beyond the limits of the average moves of the day and week.

While the pair is trading in the flat range, you must adhere to the rules of work in the flat. A violation of the structure will require an exit and fixation outside the zone of accumulation. The closest possible option is to close today's US session above 1.3386. If this happens, the phase will change to a bullish impulse. The probability of this event is 30%, which makes this model auxiliary.

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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.

Samanta Kruder,
Analytical expert of InstaForex
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