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After a strong break in oil and a nice rally, we once again see the commodity turn bearish. To start the week, the instrument has been pushed towards the lower end of a down channel without much of a push to move it lower. While at these levels we may see a potential for a correction higher before continuation of the lower move. Please she the 4H chart of oil below.
While above the boxed area, we have potential for a push higher.
A look at CADCHF, shows that though the pair is also in a down trending channel, we seem to be held by strong support on the 4H chart illustrated below.
While this support holds the pair to the upside, and oil holds as well we have a long side scalp setup. Though without knowing if oil holds, it makes sense look for some confirmation. Below is a 1H chart of what the CADCHF is doing in the short term.
Session resistance has been marked at 7369 on the above chart. To ensure we don't get a downside break in either oil or CADCHF, the entry here will take the form of a buy stop at 7370 with stops below the support at 7330. The potential on the move up towards the top of the 1H channel exists, however to play it on the safe side TP can be at the 61.8 fib level at 7420.
While above the boxed area, we have potential for a push higher.
A look at CADCHF, shows that though the pair is also in a down trending channel, we seem to be held by strong support on the 4H chart illustrated below.
While this support holds the pair to the upside, and oil holds as well we have a long side scalp setup. Though without knowing if oil holds, it makes sense look for some confirmation. Below is a 1H chart of what the CADCHF is doing in the short term.
Session resistance has been marked at 7369 on the above chart. To ensure we don't get a downside break in either oil or CADCHF, the entry here will take the form of a buy stop at 7370 with stops below the support at 7330. The potential on the move up towards the top of the 1H channel exists, however to play it on the safe side TP can be at the 61.8 fib level at 7420.
