Both USDCAD and OIL prices are trapped for a year now in a wedge pattern. Usually patterns like this provide a solid actionable signal once price breaks out. In the case of USDCAD we have already seen a throwover above the upper boundary of the upward sloping wedge pattern with bearish divergence signs as well.
Both instruments reach the edge of their wedge pattern for the 3rd time and we do not usually see a 4th check, that is why I watch very closely the short-term charts for a reversal confirmation.
I’m therefore bullish Oil and bearish USDCAD. Traders need to be patient and wait for the right confirmation signals to open positions for the impending reversal. The turnaround is expected to be big and worthwhile trading it. If you want to see my trades regarding these two instruments, you can subscribe now by visiting my PREMIUM SERVICES page.
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.