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Market View

USOil drops, USDCAD rises

Wednesday, May 3, 2017 6:32 AM GMT

USDCAD goes “Loonie” especially when USOIL is extremely volatile. USOIL dropped sharply on Tuesday following the high supply expectations and pushed the pair even higher. It is moving within a long term rising channel, which is testing its upper side. In addition, it’s near major resistance 61.8% Fibonacci level. This level may give the opportunity for profit for the bulls.



In this timeframe, the price is also testing the upper side of the rising channel and it’s slightly consolidating below it.  



Here you have the USOIL 4hour chart in order to show you the reverse linear relationship of both instruments. There is a short-term support at 1.365 (horizontal support and rising trendline) which may give a buy setup. However, if price violates this on the downside then the pair may see levels as low as 1.353-35.

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