We’ve been seeing a very interesting action during this week regarding Oil’s prices, as the recent data had helped the Canadian dollar to weaken against the greenback and at this stage, USD/CAD is testing new weekly highs, without counting the recent pullback made following the Fed interest rate decision. In terms of Oil’s data, US crude oil inventories increased by 1.671M during last week, against a forecast of a decline around 2.257M. Also, the weakness in Oil can be supported by recent demand by Gold on the financial markets.
The technical picture for USD/CAD at H4 chart is still very bullish and calling for a continuation higher. A bullish trend line projected from the June 21st lows is still there and eventually we can see a rally towards the 1.3287 level on a short-term basis. A bearish scenario for the Loonie can call for a breakout below the 1.3175 level, with a target placed around the 1.3030 level.
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Origin: FX BAZOOKA
