we discussed the importance of the oil service index a while ago – http://bartscharts.com/2014/04/01/loonie-the-dollar-and-the-oil-services-index/ – w/ regards to the Loonie vs USD.
what we see happening now is an important level being hit on the Oil Services Index:
why is this important? Well, the USD has been on a tear vs the LOONIE and while the ultimate forecast is for this to continue we think this initial move of the dollar vs the LOONIE is ending (see CAD charts from this post: http://marketfy.com/product/advance-pattern-recognition/blog/1191/view/58856/ ) and we expect a pullback on the Dollar vs the Loonie that, after a 3 wave sequence, should be bought. here’s what we also know … if that level on the Oil Service Index is lost, then the USD “should” continue to surge, Oil will more than likely be defeated at the pattern shown in the last post and well we’ll just go back to the drawing board.
what does the Oil Service Index have to do w/ the LOONIE vs USD? Well, a picture paints a thousand words …