Over the past week, the formation of an accumulation zone has completed and the decline of the pair remains to be the medium-term priority. The formation of daylight candles indicates the presence of large limit orders above the level of 1.2920.
Medium-term plan.
The upward movement remains corrective as long as the pair trades below the weekly shortage 1.3016-1.2997. There is a noticeable presence of large limit orders for sale above the level of 1.2920, which restrained growth. In case that the downward movement continued, the next target to strengthen the Canadian dollar is the weekly short-term target of 1.2761-1.2743, reaching this level will allow fixing most of the sales.
To form an alternative model, you need to combine the pair above the 1.2920 level. This will allow considering the growth of the weekly short-term fault 1.3016-1.2997, the test of which will indicate the next priority.
Intraday plan.
Last week, the reversal pattern was formed which indicates a high probability of reaching the weekly short-term target of 1.3016-1.2997. The determined support is the NKZ 1/2 1.2852-1.2843. While the pair is trading above this zone, the probability of growth remains high. To break the bottom-up model, players should close the nearest US session below the level of 1.2843. Therefore, selling can be considered for a weekly short-term shortage of 1.2761-1.2743.
Daytime CP is the daytime control zone. The zone formed by important data from the futures market, which change several times a year.
Weekly CP is the weekly control zone. The zone formed by important futures market marks, which change several times a year.
Monthly CP is the monthly control zone. The zone is a reflection of the average volatility over the past year.
* The presented market analysis is informative and does not constitute a guide to the transaction.
