khansalarehsan
Long

Can Oil get to 60?

OANDA:WTICOUSD   West Texas Oil
The red line in the chart above is weighted average CAD. The correlation is amazing. See where the red line is now! It is heading up and the best guess is to have OIL following it.
Also yesterday it attempted to go lower after visiting the EMAs but it completely failed. This is a bullish sign too.

The chart below is the weighted average CAD. First, see how the neckline of inverted H&S was broken and then again retested the neckline. The last couple of sessions in bounced beautifully off the 1) EMAs 2) Neckline 3) very old (10 years) falling trend line . After another surprise in the jobs report, I think CAD can make everybody surprise.



Finally, the last ingredient to go Long Oil is weaker USD. Here is DXY daily. You can see how it is right below the falling trend line which means it is more likely to see USD going down rather than up.



Add them up 1) Strong CAD and 2) weak USD, we will have USDCAD lower is further confirmation. Click and play the chart below and see where the target for USDCAD is. I think it will visit the rising trend line soon.



If you enjoyed this analysis please Like it.
Khan


Comment: Closed with 181 pips of profit
As you can see trade opened at 52.63 and closed at 54.44
Bottom line: * CAD possibly is reversing *
Thanks for following,
Khan
Trade closed: target reached
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