Trend comparison and setups for USOIL and USDCAD
Updated
Hi pros!
Let's begin with usoil that formed a giant rising wedge for approximately 10 years and price is now at the lowest point with a big bullish divergence on macd.
Normally if price respect the pattern we should buy from here because of the div but also because of the strong support based on the trendline of the wedge + structure
fundamentally oil price is at the lowest point since 18 years but a buy here isn't wise because of the coronavirus stopping flights and a lot of exportation and even quarantine for all the France, spain and italy (I guess Asians already are in quarantine and Americans won't last too much before applying those measures)
Now let's take a quick look on usdcad which is actually on a incontrolable rally. That candle in reaction due to the gap of oil on last week lead the price to the highest point since 5 years.
Conclusion: we could observe an interesting changement of trend on this forex pair and the oil market but before this price should make a first lower high first (to be more confident and not buying a falling knife). Normally that won't take too much because there is already a solution on the problem of corona : a French medic found a very cheap cure and very effective, USA found 80% of the molecula which will cure the virus, Israel almost finished a vaccine
Let's begin with usoil that formed a giant rising wedge for approximately 10 years and price is now at the lowest point with a big bullish divergence on macd.
Normally if price respect the pattern we should buy from here because of the div but also because of the strong support based on the trendline of the wedge + structure
fundamentally oil price is at the lowest point since 18 years but a buy here isn't wise because of the coronavirus stopping flights and a lot of exportation and even quarantine for all the France, spain and italy (I guess Asians already are in quarantine and Americans won't last too much before applying those measures)
Now let's take a quick look on usdcad which is actually on a incontrolable rally. That candle in reaction due to the gap of oil on last week lead the price to the highest point since 5 years.
Conclusion: we could observe an interesting changement of trend on this forex pair and the oil market but before this price should make a first lower high first (to be more confident and not buying a falling knife). Normally that won't take too much because there is already a solution on the problem of corona : a French medic found a very cheap cure and very effective, USA found 80% of the molecula which will cure the virus, Israel almost finished a vaccine
Note
there will be a small problem on the resolution of this virus as European countries took different decisions.France, spain and Italy closed the borders and isolate every citizen (confinment in their home and no possibility to go outside except with an authorisation of the gov, or for buying food)
And netherlands and England, took the decision to "assimilate" the virus to the people : to let infect between 50 to 70% of the people for the virus to become weak
Note
so as you can see England and netherlands are now the problem to end with this virus lolNote
don't have an idea about what did portugal, germany, switzerland and Belgium but i'm thinking about a confinmentNote
same for all the other countries don't have an idea but thinking about a global quarantineNote
Trade active
Note
Rocket 1:5about to hit target 2
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