Another trading week, another week that US Oil sets to push higher. Price action traders are looking to short USDCAD as this pair tends to be negatively correlated with Oil.
US Oil was able to create a new yearly highly just short of 71.80 this Monday. Traders can expect the price to pull back slightly before the next leg up to $72 per barrel. With economics continuing their reopening plans, we could see Oil hit $77 per barrel by the end of the summer.
With the Dollar in a rut, it is quite hard to find a trade setup for the majors that makes sense. Potential shorts for USDCAD, this week does make sense. Oil and USDCAD have a negative correlation, so if Oil goes up, USDCAD should go lower. A shooting star on the daily could be signs of USDCAD shorts.
With the Dollar’s future price movement still unknown, traders will have a harder time finding suitable trades for the majors and commodities like Gold. It would be best to shift focus to the minors and cryptos to find viable trade setups.
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- Read yesterday’s breakdown: US Oil Up +120 Pips and Dollar Pushes Back Against Bears
