Oil prices will likely remain elevated as there are no signs that the Middle East tensions will ease anytime soon. In this environment, the currencies of oil exporters, such as the CAD, may feel good.USD/CAD is consolidating within a triangle on H4 as it failed to get above the 100-day MA yesterday. The upper border of the pattern is at 1.3258 (200-period MA on H4). Above it, the pair may be able to test the recent high of 1.3286 (61.8% Fibo of the September decline), although there will be the 100-day MA at 1.3270 on the way. The lower border at 1.3240 guards the way to 1.3228 and 1.32. We favor the bearish scenario. The Awesome Oscillator on H4 formed a lower high.
