CAD's Trade Depends On Oil
|Hey traders!
We have seen a nice move up on oil last week, up more than 15% which was the biggest weekly gain since the 2011 following the OPEC deal to cut crude output. It was a nice move up, now towards $52 per barrel, which looks like an important technical level based on past price moves, but current move has momentum so resistance can be broken which may lift price to much higher levels, ideally towards $60 in weeks ahead. So if you trade oil directly through futures or cfd’s then you may want to keep an eye for short-term buying opportunities on pullbacks. But if you are more of an FX trader, then you will want look for CAD or NOK. Personally I have my eyes on the USDCAD for possible shorts on intraday pullbacks next week, as big recovery from 2016 lows can come to an end. It’s a clear three wave move that signals for a strong bearish reaction in the future. Well, some CAD crosses can be even more interesting if we consider that USD index still hold strong gains in an uptrend.
Have a good trading week,
Grega Horvat
USDCAD, Daily
Crude OIL, Weekly
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