Inside technicals and chart patterns by 
The canada and crude are being watched closely as both are sitting near key decision levels.
So what’s going on in oil going into the weekend. It’s quiet in the pit. I’m looking specifically at the Dec. contract as that’s the month I’m short.
The bottom line of the Wave has help buyers in check but there certainly hasn’t been a sell-off as the U.S. Dollar Index continues to trade within Monday’s wide range. My short position is just sitting…but boredom is and has never been a reason to exit. However, if the market cycle shifts it will get my attention and if prices rally up through the top line of my Wave, my trade is no longer valid and I’m out.
The canada has me looking at a short off the Wave which means that the crude oil market will have to rally and this is opposition to my crude oil short…I have to be aware of that as I am trading both commodities and the forex pair.
I’m looking for a short off a hit from the bottom line of the Wave and that will initiate my short - as long as the market cycle is still down (four to six o’clock Wave angle).
So here I am, between a rock and hard place but with the understanding that if my crude oil trade fizzles out with a USD/CAD downtrend, the USD/CAD trade could be a viable entry. Now here’s one more scenario and it’s not ideal but it is one I must consider if I am to short the canada, and that would be a break down through the support of the 233 LDL (Lazy Days Line).
- Raghee