Greetings traders. Today I am taking a look at the oil and its possible future moves. Generally, like other indices and commodities, overall, oil is bullish. In the channel above, we notice that price has reversed off the channel's diagonal resistance and broke below the trendline. Price gave us a nice retest which potentially confirms the reversal continuation.
Oil is positively correlated to the Canadian Dollar as Canada is one of the top exporters of oil. This means the price of oil dropping will affect XXXCAD pairs positively, and CADXXX pairs negatively. Going into this coming week, my focus will be on these CAD pairs and trade 2 - 3 high probability setups. One of these will most like be CADJPY. Japan imports oil. A decline in the price of oil is most likely to be in favor of the Yen.
Oil is positively correlated to the Canadian Dollar as Canada is one of the top exporters of oil. This means the price of oil dropping will affect XXXCAD pairs positively, and CADXXX pairs negatively. Going into this coming week, my focus will be on these CAD pairs and trade 2 - 3 high probability setups. One of these will most like be CADJPY. Japan imports oil. A decline in the price of oil is most likely to be in favor of the Yen.