A bullish wedge is being formed after an impulsive rise from 1.2677 to 1.3120. Price has pulled back to the 61.8% Fibonacci retracement. Initial signs of a bullish reversal are there together with the bullish divergence by the stochastic oscillator. USDCAD is trading in a bigger corrective pattern and we are currently in wave C up that could very well extend above the 1.33 even towards 1.36.
At the same time we see Oil get rejected at the downward sloping trend line resistance and making lower highs and lower lows. Price could next make a new low below 45.80$ that could bring price per barrel back towards low 40s or even below it.
A break above the black trend line will be a very bullish signal that will make me expect Oil to reach to new highs above 51$.
I’m bullish USDCAD and bearish Oil. Thank you for taking the time to catch up on my thinking.
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.