I have updated the chart by the recent developments. Previously drawn ABC formation is now turned out to be a 1-5 wave formation. The first Test Point (shown on the chart as hand) did NOT hold, which highlights weakness. The probability the price reaching 1.24 levels is more likely than not at this point. Besides;
-Oil is quite strong still. I expect Brent Oil to reach 53.5 and even 54 dollars, where the price will meet a very important trend channel upper line. In the mean time USDCAD may very well continue to slip down.
-Dollar index is quite weak as well. I expect a drop all the way to 11650 levels, where I can see a significant Resistance.
I personally believe that we wont see USDCAD to recover on the long side before Oil starts going down and USD index recovery. Avoid going long on this pair for a while. Short term trades shall focus on short opportunities to arise.
Note: Also watching other comments on this website, I have noticed that there was lots of traders betting on the Long side. As we know Sentiment indicator is very effective. Sentiment indicator is a contrarian indicator. Meaning, when the mass believes that the price will go one way, it mostly goes the other way.. It is interesting and insightful to watch this indicator, as the primary reason for the markets to move is the sentiment of traders. Good trades.
-Oil is quite strong still. I expect Brent Oil to reach 53.5 and even 54 dollars, where the price will meet a very important trend channel upper line. In the mean time USDCAD may very well continue to slip down.
-Dollar index is quite weak as well. I expect a drop all the way to 11650 levels, where I can see a significant Resistance.
I personally believe that we wont see USDCAD to recover on the long side before Oil starts going down and USD index recovery. Avoid going long on this pair for a while. Short term trades shall focus on short opportunities to arise.
Note: Also watching other comments on this website, I have noticed that there was lots of traders betting on the Long side. As we know Sentiment indicator is very effective. Sentiment indicator is a contrarian indicator. Meaning, when the mass believes that the price will go one way, it mostly goes the other way.. It is interesting and insightful to watch this indicator, as the primary reason for the markets to move is the sentiment of traders. Good trades.