Oil resuming downtrendposted 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.
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.
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.
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.
We remain bearish on WTI oil.