We are still bearish with oil, given all the bearish signs (listed on the chart). We were expecting a faster down turn for a 3rd wave, however the market went back up invalidating the ABC count, before the 3rd wave. Instead the upmove expanded to 0.764 Fib level. This may indicate a complex top formation in the making. Currently, we will watch whether the Oil price will tend to follow a triangle top formation.
The implication on Canadian dollar:
As the USDCAD is heavily correlated to Oil prices and USDCAD is still weak (bear), we wouldn't recommend to go go long with this pair yet.
The implication on Canadian dollar:
As the USDCAD is heavily correlated to Oil prices and USDCAD is still weak (bear), we wouldn't recommend to go go long with this pair yet.