USOil potential drop will; lead to a rally in USDCAD (15/04/2019) 12:52

USOil potential drop will; lead to a rally in USDCAD (15/04/2019) 12:52

On April 15, 2019, Posted by , In Uncategorized, By ,, , With No Comments

USDCAD.DMADaily-1.png USOil.DMAWeekly-0.png

Earlier on in the year we have shared our sentiment on the USDCAD which we are somewhat Bullish on. This is not based on the analysis that we have carried out on the USDCAD but also the analysis we have carried out on the USOil. USOil observed on the weekly chart is showing signs/indications of being overbought. This thus indicates the exhaustion of the Bullish run we have had in the past four months. We are of the view that USOil being overbought at $63,44 we are expecting a fall in price. Not only do we forecast a fall in the price of oil, based on the Weekly stochastics but it is also because the price is in the fib zone. This together signals a potential drop in the price of oil. Now turning to USDCAD, USDCAD has been moving in an upward trajectory, though recently it has been consolidating more especially after the retracement. However, it is important to note that a consolidation after a rally often points to a continuation. Therefore we forecast a breakout which will thus spark continuation of the rally towards theĀ 1.3637 area

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