Resistance On Crude Oil Can Be Supportive For USD/CAD

Gregor Horvat
Gregor Horvat
Forex Technical Analyst •

Bullish-looking USD/CAD may limit the gains on Crude oil, as we see both in corrective phase.

Today we will talk about Crude oil + USD/CAD and their negative correlation, as Canada is the third-largest oil reserve.

CRUDE OIL,4H

OIL4H

As you can see, Crude oil turned sharply down from the highs in March, while USD/CAD recovered strongly from the lows, which we see as a first leg A.
Well, recent slow price action and corrective wave structure we see as a wave B correction, which means that we have to be aware of wave C that can push Crude oil back to lows, while USD/CAD may face a bigger recovery back to highs. So, watch out for limited current movement and be aware of reversals that can occur anytime soon.

USD/CAD,4H

USDCAD4H

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Also Mentions:
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