The pair is currently trading behind the lower border of the previous week's accumulation zone. This may help the Canadian dollar strengthen further. It is important to understand that the pair's decline led to the test of the monthly control zone. Its upper border is located at the level of 1.3950. So, the pair will hardly be able to consolidate below the indicated mark until the end of the month.
Based on the above, it can be cocluded that a new accumulation area between the level of 1.3950 and the pair's weekly high is expected to form.
An alternative growth model would preveil if today's trading session closes above yesterday's high. In this case, the pair is likely to retest its monthly high. This model will indicate the interest of the Canadian dollar's major sellers. Buy deals will be the priority.
Daily CZ - daily control zone. An area formed by important data from the futures market that changes several times a year.
Weekly CZ - weekly control zone. An area zone formed by the important marks of the futures market which change several times a year.
Monthly CZ - monthly control zone. An area that reflects the average volatility over the past year.
