28.08 - CAD and oil are going to grow
- by Anna K.
As we all know, in trading world there are several intermarket correlations. There is the most famous one – gold and USD. And there are less famous but still pretty effective when it comes to predicting the future price for the assets. Like oil and CAD, for example. And seeing how US crude oil is going to see inventory today it is easy to assume that we are going to see changes in USD/CAD performance, and we would probably be right.
Those who are prone to analysis of the chart are already talking about the bearish reversal of performance for USD/CAD after quite the climb. The couple has been growing together with the greenback for several days in a row and the growth was especially fruitful yesterday. But is it the time now for CAD to find its strength? Most likely. If we are going to see the surge in the prices for oil, we are going to see the fall in USD/CAD chart – that is for sure.
According to this it is easy to figure out that all of the currencies connected and dependent on commodity’s growth are going to rebound as the crude is going to grow. That is after the inventory in the USA is over.
Until then, we need to use trading signals to know what to do with the currency.