The USD/CAD has been a main beneficiary of the December rally in WTI crude oil. Costs of the February WTI futures contract gained virtually $6 per
The USD/CAD has been a main beneficiary of the December rally in WTI crude oil. Costs of the February WTI futures contract gained virtually $6 per barrel for the interval, an uptick of greater than 10%. Subsequently, the Loonie posted stable positive aspects vs the Dollar, with the USD/CAD driving decrease by 296 pips.
Nonetheless, at the moment’s motion within the Loonie has defied its conventional correlation with crude oil pricing. February WTI has spiked by greater than $1.65 per barrel and posted an intraday excessive of $64.00. Nonetheless, the USD/CAD is barely within the inexperienced regardless of the news-driven rally in oil. For now, it seems to be like foreign exchange gamers are content material with this pair settling close to the 1.3000 deal with.
USD/CAD Up Modestly Going Into Weekly Shut
Recent civil unrest in Iraq and drone strikes from U.S. forces despatched the USD/CAD south to open the buying and selling yr. Now, the motion has calmed down simply beneath the 1.3000 big-round-number.
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Going into subsequent week’s commerce, there are two ranges on my radar for the USD/CAD:
- Resistance(1): 38% Retracement, 1.3038
- Help(1): Swing Low, 1.2951
Backside Line: Though charges are up modestly in at the moment’s session, a bearish bias stays warranted for the USD/CAD. The each day downtrend could be very a lot intact, with solely psychological ranges being current as assist. At this level, one other check of the 1.2950 space is very possible…