Oil resuming downtrend

posted by genuinelyFX at 03/11/2015 - 11:28 GMT

Oil is preparing for a launch lower. The correction could not sustain higher highs, and the lows are under attack.

USOil, daily data


As for this pattern, we saw it recently in EURUSD. it collapsed after breaching through the lows. Oil still has to trigger the break, but the downtrend still has room. It could accelerate.

USOil vs. EURUSD, daily data


Bellow, we see the correlation between Oil and the Canadian Dollar. USDCAD just broke out of it’s pattern, an oil might be soon to follow.

USOil vs. USDCAD (inverted), daily data


On a longer term, we see from previous analysis, that oil has room down. In the 40 area, we could meet some strong support, yet 35 is not out of reach.

Crude Oil, futures, weekly data


We remain bearish on WTI oil.