This is the final analysis (part 1 and 2 can be found on Brent Oil chart and US Dollar index chart).
We see:
-Negative Divergence in between Points C and S (on chart) at MACD
-Price touching 200 days MA from the bottom
-Price is at a strong resistance zone (shown as dotted red line on chart)
-Larger picture shows a perfect Head and Shoulders formation
-Price reached 38.2 % golden ratio (measured from the head)
-We can somewhat see a squeezing of prices which forms a negative wedge (cyan lines)
-From first and second analysis, Dollar index is weak and Oil may go up.
Considering all of these I but bet on the down side for the USDCAD pair (for the moment)
Regards
We see:
-Negative Divergence in between Points C and S (on chart) at MACD
-Price touching 200 days MA from the bottom
-Price is at a strong resistance zone (shown as dotted red line on chart)
-Larger picture shows a perfect Head and Shoulders formation
-Price reached 38.2 % golden ratio (measured from the head)
-We can somewhat see a squeezing of prices which forms a negative wedge (cyan lines)
-From first and second analysis, Dollar index is weak and Oil may go up.
Considering all of these I but bet on the down side for the USDCAD pair (for the moment)
Regards
Note
Our Analysis was correct. We looked at all the 3 charts, namely USD Index, Brent Oil and finally USDCAD pair and concluded that there is a weakness for the price to go down. So far, the market followed what we were seeing. More updates will follow. Regards.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.