How likely is it that USDCAD is going down-Part2
Continuing from the first part of our analysis (refer at my USDollar index analysis), I see on the Brent Oil chart the following:
-Price is at 61.8% golden ratio point
-High level of divergence (RSI, MACD etc)
-a bullish wedge formation (regard squeezing of pricing)
-Some support levels hit
On contrary, wedge formation channel is broken down but there is a bounce back. We need confirmation for the start of an up move.
Summary. The is a likelihood that the Oil price may go up sharply from this point on. However as there is no confirmation there yet, I am still open to a down move as well. Nevertheless, technically speaking, there are move signs for an upmove at this very moment.
Part 3 of thsi analysis will follow shortly an the USDCAD chart
-Price is at 61.8% golden ratio point
-High level of divergence (RSI, MACD etc)
-a bullish wedge formation (regard squeezing of pricing)
-Some support levels hit
On contrary, wedge formation channel is broken down but there is a bounce back. We need confirmation for the start of an up move.
Summary. The is a likelihood that the Oil price may go up sharply from this point on. However as there is no confirmation there yet, I am still open to a down move as well. Nevertheless, technically speaking, there are move signs for an upmove at this very moment.
Part 3 of thsi analysis will follow shortly an the USDCAD chart
Comment:
IMO Oil gave the signal in the UP direction (refer to my comment 2 weeks ago as "There is a likelihood that the Oil price may go up sharply from this point on") above. Time to go long on Oil
Comment:
Sharp increase in Oil continues. I expect a correction at around 50$ Range, which will complete the 5th wave. Currently we are in an obvious 3rd wave. After that, there could be a phenomenal surge in Oil prices. I will describe why in a new follow-up idea. I see extremely bright Oil advance. Keep tuned.
Comment:
The correction which I have mentioned couple of weeks ago has been realized at 50$ range. The price made then a fall-back. Currently, the Oil price is still in a correctional behavior. News coming out of G20 from the Saudi-Russian meeting caused an upsurge with equally strong down-turn up to this point. This means that the Oil market has the great potential to go up (into a 3rd major wave), but there are still some indecisiveness hanging around. I strongly maintain my opinion that the Oil will go quite high an d fast to 70-100$ range in the very near future. Keep away from long positions against Canadian Dollar, while this move starts. If you want to trade Canadian Dollar, it would be best to sell short currencies against it. Good Trades.
