Crude oil has sold off due to concerns about the Delta variant of the covid-19 virus. This could have been an overreaction in the market as crude oil sold off alongside gold prices which have recovered slightly.
The USDCAD has set up a possible head and shoulders formation, therefore we see the possibility of a recovery on crude prices leading into the OPEC oil report later this week – this may set up a trade on the USDCAD later today.
Technically there is a double bottom structure therefore we are expecting a bounce at these lows.
Crude Oil 1 Hour Chart
Trade Setup: BUY market execution, current price 66.90 (Focus markets), stop loss 65.30 and take profit 70.10
Stop loss: 160 pips
Take profit: 320 pips
1 Contract = $1 USD per pip
2 Contract = $2 USD per pip