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 support level. This coupled with historical amount of is enough to communicate to us that some corrective wave is probable. We're not looking to buy this support level, 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.