Resistance On Crude Oil Is Support On USDCAD

Hello traders!
Today we will talk about Crude oil, USDCAD and their negative correlation in the market.

As you may already know Crude oil and USDCAD are in tight negative correlation, not tick by tick, but they are mostly in the same shape, just inverted.
Well, want we to point out is that correlations are very important to get the right approach to the markets. And, if you combine them with EW and some other technical tools, then sometimes can be much easier to recognize the pattern and direction.

Let's dig into the charts.
Crude oil can be forming big triangle and now when it's trading nicely within a corrective channel and right at the upper triangle line and potential resistance, we wonder if it will break up or it will turn down.
But, if we take a look on USDCAD, from EW perspective we can see quite nice bullish formation that can send the price at least towards the upper triangle line.

So, if we consider all the evidences, then the next move should be down for Crude oil and up for USDCAD, at least into the projected minimum target area, if not even further.

Trade smart and wait for confirmations!
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Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.