FX.co ★ Trading plan of the currency pair USD / CAD for May 21, 2018

Throughout May, a medium-term accumulation zone is formed. This becomes possible due to the fact that at the deviation levels demand and supply increase. Last week, the decline was stopped at the level of 1.25% (1.2738), which resulted in growth. The last week's compilation zone is below the current price, which indicates the target deviation level of 1.25% (1.2937). The achievement of this mark obliges you to close part of the position, and the rest is transferred to a breakeven. For those who do not have a deal from the Central Bank compilation zone, it is necessary to consider purchases when forming any pattern. An important factor is the favorable risk-to-profit ratio, which should be at least 1: 3.

The test at the price of level 1.2937, can become decisive for further movement. If the bindings above it do not occur, then the downward movement will again acquire priority status. Looking for a pattern to sell at the specified resistance level is the optimal strategy. It should be noted that further growth may require a reduction to the banking compilation area, which implies obtaining the most favorable prices for the purchase. It is important that this happens before the next environment, which will bring a new range of termination.