alexkyp

USDCAD potential BUY

Long
OANDA:WTICOUSD   West Texas Oil
The pair its been on an upward trend recovering past months losses and is currently trading around the 1.3270 area after a slight reversal 1.330. With the Us dollar index following a steady bullish run and trapped within the 96.00-97 area and the oil prices (WTI) index starting a bearish trend after a bullish run for the past two months we can expect the pair to continues its upward trend to reach previous highs of 1.3340 and 1.3380. We can wait for further confirmation around the 1.3270 area with prime entry point the 1.3260 near the 0.618 fib level where it previously retraced.

Fundamentals:

Oil:
The oil prices (WTI) index starting a bearish trend after a bullish run for the past two months.
Fundamentals:
* Gloomy economic outlook weighs on crude oil prices.
* The U.S. - China trade conflict hurts market sentiment.
* The number of active oil rigs in the U.S. increases to 854.
Crude oil stayed under pressure throughout the week as investors started to price the potential negative impact of the global economic slowdown on the oil demand outlook. After testing the $52 handle on Thursday and also earlier today, the barrel of West Texas Intermediate erased a very small part of this week's losses and was last seen trading at $52.70, where it was up 0.2% on a daily basis

*** Increased number of oil rings = more supply than demand oil prices should follow a further drop the upcoming weeks!**
Meanwhile, the latest data published by General Electric Co's Baker Hughes energy services showed that the total number of active oil rigs in the U.S. increased to 854 this week from 847.