Last week, the pair reached the weekly short-term target of 1.2761-1.2743, which allowed to stop the fall of the exchange rate. To continue the decline, it may require obtaining more favorable prices for the sale.
Medium-term plan.
The downward movement is an impulse, which suggests the strengthening of the Canadian dollar in the medium term. To confirm the bearish movement, it will be necessary to close one of the American sessions below the weekly control zone of 1.2761 - 1.2743. If this happens, the medium-term goal will be the monthly CP of April 1.2550-1.2540. The growth of the pair so far is corrective, which will allow obtaining more favorable prices for the sale. The upper limit of the possible flat range will be located within the weekly short-term control zone of 1.2931-1.2913.
For the formation of an alternative growth model and the formation of a medium-term accumulation zone, it is necessary to absorb the movement during Thursday and Friday of the previous week and consolidate above the local flat.
Intraday plan.
In preventing the fall of the pair on a weekly short-term allows you to assume the emergence of demand and the growth of a pair to one of the resistance zones. The nearest resistance is the control zone a of 1.2830-1.2822. While the pair is trading below this zone, the downward movement remains a priority. To disrupt the bearish structure, it will be necessary to close the American session above the level of 1.2830. This will allow us to consider the growth to the weekly short-term outlook of 1.2931-1.2913 which is already in the medium term. It is important to understand that the probability of the continuation of the pulse is always two times higher than the probability of its end. Therefore, it is necessary to consider the resistance for the formation of patterns in the direction of continuing the fall of the course.
The daytime CP is the daytime control zone. The zone formed by important data from the futures market that change several times a year.
The weekly CP is the weekly control zone. The zone formed by marks from important futures market which change several times a year.
The monthly CP is the monthly control zone. The zone is a reflection of the average volatility over the past year.