Oil fails to break above the channel, time go down fast.
Short Brent and long Wti with equal exposure should be a decent R/R bet in regards to bet on a narrowing of spread.
Combining some trickery with heating oil and wti oil leads me to this.
Brent should drop to somewhere between the dotted lines by the end of August.
UCAD is 180pips away from a confirmed Head and Shoulders, weekly study. Watching price action this week for bear continuation or bull reversal (see my USDCAD Bearish Butterfly study below). Also keep an eye on EURUSD staying above 114/115 range and of course any Oil fundamental reporting.
The market was unloaded today All bulls on margin call: who buy dip, who buy after OPEC meeting, who sustain the price in march I think Open Interest sufficiently decreased, and the new bull cycle arisen Commercials have reduced net short position and new, fresh and brave bulls ready to buy every dip Open: 45.50 SL: 44.60
As the crude oil price is still trending within the uptrend channel, we expect it is poise for a breakout towards the US$60-US$62 levels.
Brent (UKOIL) is on the slippery path as production is falling and this could lead to the drop of it's share and loss of the benchmark status to other crudes, namely WTI or Dubai or Urals. Triangle is possible model here. Target minus $10 spread - the WTI (USOIL) becomes more expensive than Brent.
AUD/USD has pulled back to key weekly support. I see prices driving higher over the next week or so. As it stands, the monthly candle is a strong bullish candle and the dollar is losing steam, which supports my bias
C point between Fibo. 61.8 & 78.6 watch price action