FX.co ★ Control zones USDCAD 05/20/19

The formation of a medium-term flat continued last week. The upper limit formed by the WCZ 1/2 1.3490-1.3479 again acted as resistance and trade closed below it. While the pair is trading within the accumulation zone, the main deals should be made after the test of the range limits. The targets are the opposite border.

Consolidation on the boundaries of the flat is required. Partial transfer to breakeven is possible, but it should be understood that the way out of the flat will be swift and there might be no re-entry

In order to change the trading principle on the trend, it will be necessary to close the US session either above the previous week's high or below the low of three weeks ago. Until this happens, it is better to continue trading within the framework of the flat, since partial consolidations will allow taking profit over the entire range, which can last for several months.

Daily CZ - daily control zone. The area formed by important data from the futures market, which change several times a year.

Weekly CZ - weekly control zone. The zone formed by important marks of the futures market, which change several times a year.

Monthly CZ - monthly control zone. The zone, which is a reflection of the average volatility over the past year.