This is a recording of a US Opening Bell webinar from May 15, 2017.
In today’s US Opening Bell webinar, we discussed technical patterns on key markets. Crude oil prices are testing the bottom side of a 200 day simple moving average. This moving average has been a level of support and resistance for the past 3 years. If this level holds, we will look for the possibility of a large triangle pattern unfolding. If the 200 day simple moving average breaks, then crude oil prices may be in the fifth wave of a diagonal pattern.
USD/CAD typically holds an inverse correlation to crude oil prices. We wrote about last week how it appears USD/CAD finished an ending wave pattern at multiple degrees of trend. Is the 12 month upward correction over for Loonie? If so, this would suggest USD/CAD is about to roll over if the forecast holds.
We also discussed how this trend line resistance being tested in EUR/USD near 1.10 is an important level. This is parallel to the last gasp of air for near term EUR/USD bulls. If this level does not hold, the door is open towards 1.13 and possibly higher levels. The live IG Client Sentiment reading suggests that there is still bullish air in EUR/USD. The current reading at the time of this writing is -2.53 which does provide a bullish signal.
GBP/USD may have some additional strength, though wave relationships exist not much further ahead of where price is now.
---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU
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