We have heard many times before “Buy the dips, sell the rips”. Recently we had some USD gains and there were some rumours that OPEC may cut production, so Oil price went up. If OPEC cuts production traders should go long all equities with both CAD and RUB currency crosses. Remember Oil is connected to CAD and RUB. Because USA and Canadian markets are on holiday we are not seeing some big price movements at this moment.
Technically USDCAD is showing multiple patterns suggesting that selling on rallies is the option. At the top price has failed to break the neckline of inverted Head and Shoulders. It dropped heavily making a correction with the successful break of inverted head and shoulders at the bottom. The backwind of Inverted Head and Shoulders made a Bear flag variant pattern and 1.3885-1.3900 looks like a good place to short. POC (38.2, H3, EMA89, H3, DPP) should hold the price and in the case of positional POC sell the target is 1.3780. Any breakout below 1.3780 targets 1.3710. We should pay attention to current price around 1.3820 as it shows a potential inverted head and shoulders in progress which if realized could spike the price UP towards our POC for a subsequent sell.