I'm going to watch to short this pair. It may continue to go down if it can't stand above red resistance zone. Try to find some good entries with reasonable stop loss.
Good evening traders,
Energy traders would have noticed the somewhat eery price action on oil prices recently. I believe that recently losses are attributed to:
- Emerging doubts over the degree of compliance with OPEC production cuts as Iraqi exports remain high;
- Concerns about the rate of market rebalancing;
- Rapid rebound in U.S. shale production following...
So long as USDCAD trades above 1.31 this week, there's a case to be made for a bullish reversal on this trend line support (despite the recent spike in oil prices). If prices continue falling past 1.31 without any rapid sell-off, I will probably disregard this trend line. A strong break below would expose the 1.27/28 area in the near term. I would target 1.35/36...
