the usdcad pair facing a potential temporary rebound
Updated
as we can see the dollar has weakened
for a few weeks, fluctuating inside
the 2-month downtrend channel drawn above.
last week it broke very clearly from the top, a sign of a high probability of a change in trend
to secure / deepen this analysis we can observe that the moving averages
also crossed from upside and the moving averages
are located just below, thus determining them as support.
a second support is located lower on which
the price clearly rebounded last weekend
moreover oil stagnated for many months but ended up making a violent bearish leg.
in order to take advantage of this coming downtrend on oil, we can trade the usdcad pair since it is less volatile (and that it is negatively correlated at 93% compared to the price of oil) + the setup is more appropriated
concerning the RSI indicator it break frankly the 50 level and rebound unto it confirming that price should goes up from here
for a few weeks, fluctuating inside
the 2-month downtrend channel drawn above.
last week it broke very clearly from the top, a sign of a high probability of a change in trend
to secure / deepen this analysis we can observe that the moving averages
also crossed from upside and the moving averages
are located just below, thus determining them as support.
a second support is located lower on which
the price clearly rebounded last weekend
moreover oil stagnated for many months but ended up making a violent bearish leg.
in order to take advantage of this coming downtrend on oil, we can trade the usdcad pair since it is less volatile (and that it is negatively correlated at 93% compared to the price of oil) + the setup is more appropriated
concerning the RSI indicator it break frankly the 50 level and rebound unto it confirming that price should goes up from here
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