Oil rise might cause Yen to fall and Canadian dollar to rise
Hi fans of financial markets and day, trend and swing traders. I do not have to say anything about Friday price action. I will mention a few expectations of mine regarding Yen pairs and Canadian dollar. This can of course influence prices of oil, because Yen and Canadian dollar very much correlate with prices of oil. Yen usually collapses when oil rises and Canadian dollar often goes up together with rising oil prices. You may have seen that oil has been rising recently and in the last days of the week collapsed around 10 dollars.
Watch 1.4340-1.4370 level in eur/cad pair
I believe that Yen will fall soon and Canadian dollar will strengthen. Of course, I am just speculating here a little, so do not take every word of mine too seriously. Do your own trend analysis. By looking at eur/cad pair I see that it is approaching very important resistance 1.4340-1.4370 and since I believe that oil will continue rising I do not think that resistance will be broken, but rather the pair will reverse at the level and start going down sharply.
Wait for reversal patterns at resistance
What I want to see is some kind of reversal pattern (123 pattern or head and shoulders for example) with some news making a reversal possible. Data from Canada on Tuesday next week (Retail sales) may cause the move. So, watch price action around the above mentioned levels and wait for reversal patterns. Although I do not believe upward breakout upwards is possible, it does not mean it will not happen.
I feel I would better talk about Yen pairs tomorrow. That much for today. See you tomorrow.
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Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.