Volumetric analysis on December 10
OPEC and OPEC + reached an agreement to reduce production by 1.2 million b / d for the first half of the 2019 with the possibility of revising the agreement in April. The oil market did not respond with rapid growth, as this figure was already reflected in the price. And moreover, market expected the restriction of 1.3 - 1.4 million b / s, so there is no special reaction. The current price of oil generally satisfies the OPEC member countries, so we expect prices to be traded at current levels for a while. Accordingly, there is not much to wait for a special and fundamental decline on the USDCAD pair. We will prepare for trade in the side formation with the upper limit of 1.3385-1.3445 and the lower 1.3215-1.3165. Today we admit a probable decrease towards to support at 1.3215, there we consider the possibility of purchases. However, we strongly recommend using additional patterns to search for an entry points to the market. Since the probability of growth to the resistance is also not excluded.
One of instruments that shows clear upward trend. Today, we will pay attention to the price range of 1240-1233 as support, and if the price goes down, we consider this decline as a correction and look for entry points to a purchase with a target of 1258. It should be understood that there may not be a pullback, and we can begin to move straight to the 1258 target now, however, prices are not entirely suitable for meeting the necessary risk management requirements.
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