With OPEC decision, Russia-Saudi deal to limit oil production, situation in the ME, Oil is destined to rise. We can see this on the Oil charts as well (analysis later). It seems that there is a enthusiastic crowd of traders betting against the CAD. This we can see on the chart as high volatility and triangular formations since May 2016. There were multiple attempts to break out 1.33 line, with no avail. Currently we see another triangular squeeze at around this price range (lower/smaller triangle on the chart), which has formed at the lower boundary of the greater triangle. Bear in mind that when such squeezed triangles occur midway of a higher trend (trend being the 1-5 formation marked in red on the chart), then usually it is a strong bear sign. The consolidation since may resembles an ABCDE formation. Large resistance cluster has not been penetrated thus far. The major Head and Shoulders formation still holds. With Oil prices going up, I estimate that the Canadian Dollar will rise against the USD and this may occur pretty soon, as we seem to be at the end of the correctional wave which is formed since May. Still very bearish. Good Trades.
Comment:
right on track