FX.co ★ Control zones for USDCAD on 05/04/20

Today, the pair is trading near the weekly control zone of 1.4184-1.4154. This can become the main reason for building a trading plan for a correction. If the zone test leads to the appearance of a large offer, then the downward movement will become the main one in the first half of the week. It is important to understand that the pair's growth rate indicates great interest on the part of sellers of the Canadian dollar, so the likelihood of continued growth is high.

Work in the upward direction may become the main one for the entire week, however, purchases from current marks are not profitable. Therefore, forming a correctional model is required.

The correction model will develop in case the test of the weekly control zone leads to a sharp increase in supply. The most favorable prices for purchasing the instrument are located within the WCZ 1/2 1.3999-1.3984. It is important to understand that the correction may be limited to the closing level of the previous week.

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.