Oil Update: Double Bottom and CAD Plays (USDCAD, NZDCAD)
We spoke about the Oil trade on both the daily chart and 4 hour where I outlined that on the daily we did get two swings and the move was looking extended. I also outlined why oil must be propped up due to the banks now having their skin in the energy market, bailing out oil/shale companies the last time oil fell hard.
We are seeing a big move up and perhaps a double bottom play here. What we want to see is a pullback before breaking above 52, giving us the first higher low swing to work with. We will be patient.
CAD is correlated with the oil but not all the time of course. USDCAD was a trade idea we were watching and we have gotten the 4 hour break. However, I think because we have had so many red 4 hour candles in a row, I would expect a pullback to make a lower high before entering.
Finally, NZDCAD also back at a very important daily zone. We had a reaction in the Kiwi after the RBNZ did not cut rates...maybe an overreaction since it was expected, indicting perhaps that people were expecting a more dovish RBNZ. Nothing really changed though. On the daily we have only had our first lower high swing, so we CAN expect another swing.
We are seeing a big move up and perhaps a double bottom play here. What we want to see is a pullback before breaking above 52, giving us the first higher low swing to work with. We will be patient.
CAD is correlated with the oil but not all the time of course. USDCAD was a trade idea we were watching and we have gotten the 4 hour break. However, I think because we have had so many red 4 hour candles in a row, I would expect a pullback to make a lower high before entering.
Finally, NZDCAD also back at a very important daily zone. We had a reaction in the Kiwi after the RBNZ did not cut rates...maybe an overreaction since it was expected, indicting perhaps that people were expecting a more dovish RBNZ. Nothing really changed though. On the daily we have only had our first lower high swing, so we CAN expect another swing.
