I’ve got my eyes on not one, but TWO commodities this week, as well as a long-term bet on USD/CAD’s levels.
Looking for longer-term plays?
Check out these charts on USD/CAD, XAG/USD, and Brent crude oil!
USD/CAD: WeeklyAfter falling by more than 2,000 pips in a bit more than a year, USD/CAD has found some support at the 1.2500 major psychological handle that’s been serving as range support since mid-2016. That’s around the time Price Harry had just met Meghan Markle!
Bulls who are looking to buy the dollar can take comfort in the bullish divergence on the chart, which could lead to a retest of the 1.3000 – 1.3100 zones near the 200 SMA.
A downside break, however, could lead to USD/CAD revisiting its 1.2150 – 1.2250 previous areas of interest.
Double top alert! XAG/USD found resistance at 29.50 and now it looks headed for the 22.75 “neckline” on the weekly time frame.
If Silver trades below last week’s low, then we can look forward to a retest (or even a breakout) of the neckline.
But if the trend line through October, December, and February’s lows holds as support, then Silver could pop back up to its December highs.
Brent Crude: WeeklyOil bears huddle up! The Black Crack is a few jumps away from the 72.00 level that has been serving as resistance since late 2018.
With Stochastic flashing an overbought signal, do you think we’ll see some crude oil weakness in the next few weeks?
Before you short the commodity like there’s no tomorrow, you should know that the last few weekly candles look VERY green, and that it’s also possible to see an upside breakout that would take oil all the way up to the 85.00 highs.