Assalamu alaikum friends and respected forum members, hopefully, all of you are enjoying weekends. Crude light oil is retracing or correcting by the downward movement, and USD/CAD is again approaching the multi-year lowest price. Very soon after, the retracement crude oil will continue its uptrend, while USD/CAD may continue the downturn and create a new yearly lowest price.
Crude oil daily chart forecast:
A four-month-old ascending trend line is visible on the daily chart acting as support. Last week closed around $58.94 region, and the trend line support held about $57.00 per barrel area. The Bollinger middle band and trend line support are approximately in the same location in this timeframe. RSI value has gone below 63 from overbought conditions. And going near the 50 level price has a positive bounce occurring possibility.
Crude oil weekly chart forecast:
On the weekly chart, we can see the price of crude oil falling from around 261.8% Fibonacci resistance area. Despite RSI is still above 70 levels, the price is dropping. Near the multiple 200 periods weekly moving average crude oil should seek support. Around the $57.25 region, the uppermost 200 periods smoothed moving average (blue line) support exists.
Traders should buy this instrument from $57.25 or below for the targets of $65 per barrel or above and stop misfortune around $55.00 areas.
USD/CAD daily chart forecast:
A few days ago, we noticed that USD/CAD has broken below a symmetrical triangle on the daily chart. Last Friday, this currency instrument once again touched the yearly lowest price, 1.2590 regions. RSI is showing its value below 39.00. Besides, the USD is showing weakness every other day for the last couple of weeks. In these conditions, the downturn may extend from this area.
USD/CAD weekly chart forecast:
Previous year the highest price and with the lowest price, if we draw a Fibonacci, it shows that USD/CAD has broken below the 100% Fibonacci support area last year. And a previous month and the last Friday price touched the 123.6% Fibonacci support around 1.2590 region. Besides, the price has broken below the lowermost 200 periods smoothed moving average (blue line). Either price will show a double bottom chart pattern and reverse from this level or continue the downtrend. But the continuation of the downturn is more probable from this situation.
Traders can sell this currency pair from the weekly opening price and target the 1.2400 regions with stop misfortune around 1.2800 regions.