Here is my recent OIL Short call which I closed it at 60 as suggested in the chart
Click and Play
It has not reached 50% Fibo yet but I opened a Long trade on Oil and IF it runs higher it can potentially reach the upper band of the rising channel.
62.17 main target.
2017 falling trendline has been acting as a very strong resistance and it has been days which this pair has been trying to break it and once again it failed. I think it is more likely to see this pair as bearish.
It is more likely to see EURCAD breaks the top side:
1) See weighted average EURO. What do you expect?
A rotation inside the wedge formation which means it is more likely to see EURO to become stronger
2) This is CAD weighted average. And even if it is going to go higher it must touch the falling trend line...
Reasons to be short on OIL
1) Weekly Shooting Star
2) Daily Shooting star
3) 2016 trend line acting as a resistance
4) Weighted average CAD made numerous attempts to break ALL TIME trend line as failed...
I think this wedge formation is more likely to be broken to the downside because:
1) There is no Key resistance for Nikkei until 22786 (Nikkei and Gold has negative correlation)
2) There are a lot of bear stops around 112 for USDJPY. If that taken out it can even get to 113.
EURUSD has already broken the support level around 1.13 level a few times. The question is that will it come back to the wedge formation shown above or will pull back again and goes lower.
I have the following chart which may answer this question.
This is weighted average EURO. See how nicely broke the lower band of the wedge formation. A lot cleaner and readable...