For seven months we have seen a rise in the prices for petroleum. As of now prices have already reached three-year highs. At the moment the Brent crude oil prices have approached $70 per barrel and the bullish movement is in no hurry to weaken. Against the background of rising oil prices, the Canadian dollar strengthens its positions relative to other currencies.
The US currency, on the contrary, continues to weaken and the dollar index lost 2.1% last week; the EUR/USD moved to a three-year high. The dollar has been falling for the fourth consecutive week and we have not heard any meaningful statements from the Fed members that could influence this movement.
When reviewing our chart, we can observe the completion of the correction and the continuation of the downward movement. Technical indicators indicate a sale: the Stochastic has entered the oversold zone, but we do not see any sings for the reversal of the trend yet.
Today in the United States Martin Luther King Day is celebrated and the stock exchanges are not working, so we expect the continuation of the existing trends.
We advice you to enter short positions with the immediate goals at the resistance levels at 1.2370 and 1.2335.
