Currently on the weekly Time frame, USOIL seems to show a clear retest of a neck line of the M structure. if this region hold, we can be looking at a 9000 pips drop in the price of oil. This will mean we might be expecting a weak Canadian Dollar as this pair correlate positively with it.
I will be surprised if we did not even touch the neckline lol
DetectivePikachu
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Weak Canadian Dollar is actually an inversed correlation with Oil.
USDCAD 1.38 but Oil go down = Canadian Dollar is Weak = Oil is Bullish.
However, if it's the other way then this theory would work.
ashkanmohajer34
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You mean we are on wave 2? I doubt it. I personally think this is an ABC correction with $130 being at the end of wave A. I would be surprised if wave B goes below $70. But again, if this is wave 2 to the downside you could be right.