Good day to all, my main focus this week and next will be USD/CAD as I believe it is very close to a full scale bullish reversal that will push it back towards 1.39 or even above 1.40 as I do not believe Oil price could be sustained above 50$ and technically I see Oil getting rejected around current levels.
OIL
Overbought as when it was trading around 54$.Price just below the Kumo (cloud) resistance. Best it could do is to move a bit higher towards the downward sloping blue trend line connecting the last two major highs and reach 53.50$. This scenario I give 25% probability. My most probable scenario is to reverse from current levels.
USD/CAD at weekly tenkan-sen support right now
Price is back testing break out area of 1.35. Daily above Kumo and testing daily kijun-sen at 1.35. Many support indicators here.
Short-term trend remains bearish. No reversal sign yet. 1.3545 key for short-term trend.
Target remains 1.40-1.39 but we could even see 1.34 first. I’m bullish and will be looking to open long positions targeting 1.39-1.40.
In the comments section I will update with the other FX pairs analysis.
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