We have an interesting spread between copper and oil, with the ratio chart showing signs of outperformance in Copper, relative to Oil today. We might be at a local bottom for this ratio, which paves the way for AUDCAD longs, as well as trading Copper and Oil futures/CFDs as a pair, going long Copper, whilst simultaneously going short Oil. This is a very...
Copper is in a very obvious wedge and a break would indicate a significant move into the 2.90 area. Copper has a strong correlation with $cad and $usoil as well so if we break the wedge we will be able to find long and medium term opportunities. I used the ghost bars just for fun and to possible show the projectory of copper.
Crude is reaching important Fibonacci projections, at important graphical support. USDCAD near key resistance around 1.4250 while copper is at important monthly support on trendline linking the lows near $1.95/$2.00. The whole commodity complex seems due for at least an important rebound, at least the risk/reward is starting to be interesting.