OIL: S/R levels and correlations
In this (crude oil) image you’ll see several points where price has created very significant support at $70. Price is currently sitting around $70 area and seems to be holding. If support continues to hold we’ll most likely see a bounce to $75 area or higher. If support folds, the next significant level is $65.
Currency Correlation: The Canadian doller (CAD) has a strong “possitive” correlation to oil. When Oil is bullish, the CAD will stregthen, vise versa for bearish. Bristish Pound (GBP) also ties strongly into Oil but with less significance to it’s movements.
How to apply this information: If Oil bounces off that $70 support level look to buy loonies. The USD/CAD recently hit a strong resistance at 1.0750 and bounced off. Wait for confirmation and look to sell this pair. If Oil breaks thru $70 level look for buying opportunities at a break of 1.0750.