WTI (US Oil) bull run at key level – USD/CAD trending up despite Crude price [Video]
|I’m Brad Alexander and in this week’s Market Blast Technicals let’s take a look at USDCAD, GBPNZD, and WTI (USOil).
When we have a one-way market like this, where we have price action of WTI and Brent rising for two months, technical indicators may not help.
However, we have the most important information — support and resistance.
If we move out to the daily chart on WTI we see key levels of resistance, months ago, in the $81 range and a level above in the $83 area.
If we zoom out we see the same level one year ago and more often in the following months.
Many time frames show the stochastic oscillator at overbought but, before selling oil, watch the fundamentals and wait for technical confirmation.
Yesterday we promised to take a look at GBPNZD and we see a buying opportunity with higher lows in this ascending triangle and the stochastic oscillator is turning up from oversold.
However, if we move out to the weekly chart we can see just how high price action is right now with the last time we saw this price over 3 years ago.
So, you can either buy GBPNZD with caution, or you can wait to sell it if price action bounces off resistance.
As we pointed out yesterday, the USD has gotten stronger with some obvious trend lines and trend channels like this one on USDCAD.
We can see the slight upward trend which indicates CAD weakness despite the strength of crude oil.
In markets like this, you can use Bollinger Bands combined with the stochastic oscillator to time entry and exits.
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