Looking at the longer term chart on the price of oil , we can see that this current massive crash in the price of oil is fast approaching a significant . This coupled with historical amount of momentum is enough to communicate to us that some corrective wave is probable. We're not looking to buy this , we are however very interested in seeing how the coming weeks will fare for oil , given it can have very significant impact on the global economy. For the purpose of trading such a bounce, we would rather short the USD/CAD rather than long oil itself.
That is certainly a valid play, there are a great deal of viable alternatives, they key for us is to stay out of the straight up oil market itself. When looking at the weekly charts we are seeing a technical correction looming in both oil and the dxy, so we'll be looking for viable paths to capitalize on this coming correction.