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Brent began to correct downward, USDCAD confirms


USDCAD

Scenario implementation: performed by

The Canadian dollar turned to weakening, as suggested in the previous survey. At the same time, the pair first declined, breaking through the support at 1.2672 and going up to the reversal level at 1.2631, where it found the main support, since it turned around and began to grow right after that.

The target area has not yet been achieved, but the potential for achievement remains. After the end of the local correction, there are still chances for the growth to resume. Therefore, the previous scenario remains relevant.

Forecast: continued upward movement
Brent began to correct downward, USDCAD confirms

At the moment, it is possible that the local correction will continue within the formed wide range with a passage to retest the support level at 1.2672. In this case, the subsequent rebound from this area may contribute to the formation of an upward momentum, which will target the area of ​​local highs from 1.2831 to 1.2883.

Cancellation of this scenario will take place if the decline continues and consolidates below the reversal level at 1.2631.

BRENT

Scenario implementation: performed by

The assumptions about the imminent reversal in Brent crude oil turned out to be correct. Quotes did move a little more, marking around 57.50, which corresponds to the expected reversal zone, from where the price subsequently returned under the resistance at 56.67 and continued to decline. Oil is currently trading at 54.76 and is halfway to the target area, which has not yet been reached.
Brent began to correct downward, USDCAD confirms

Apparently, the beginning of a correctional reversal is just taking shape. Nevertheless, the first signals for a probable downward movement have already begun to arrive, so the previous scenario remains relevant.

Forecast: continuation of the downward movement
Brent began to correct downward, USDCAD confirms

Confirmation of the current forecast will be the ability of prices to gain a foothold in the current area. This will probably require a pass to the resistance level at 56.07 for a retest. In case of a rebound from this area, another downward impulse may be formed, which will aim at the area from 52.76 to 51.47.

Cancellation of the current scenario will take place if the growth continues to the area above the reversal level at 56.67.

01/19/2021

Arman Beisembayev, Tickmill expert

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