The USDCAD traded strongly to the downside as the price failed to break beyond 1.3745 and fell beyond the support level of 1.3650.
This move lower was due to a combination of the renewed weakness of the DXY but more because of the surge in oil prices.
WTI traded up from the 69 price level, breaking beyond the near term high of 71.40 to reach the round number level of 73. This move is due to increasing supply concerns as Russia's sea-borne crude-oil flows have fallen to 3 million barrels a day and as European natural gas prices are higher due to strikes in France.
As WTI consolidates just below 73, if the upward move continues toward the next resistance are of 75, further downside could be anticipated for the USDCAD, with the next key support level at 1.3560.
However, watch out for a potential hesitation of the downside at the 1.36 price level.
This move lower was due to a combination of the renewed weakness of the DXY but more because of the surge in oil prices.
WTI traded up from the 69 price level, breaking beyond the near term high of 71.40 to reach the round number level of 73. This move is due to increasing supply concerns as Russia's sea-borne crude-oil flows have fallen to 3 million barrels a day and as European natural gas prices are higher due to strikes in France.
As WTI consolidates just below 73, if the upward move continues toward the next resistance are of 75, further downside could be anticipated for the USDCAD, with the next key support level at 1.3560.
However, watch out for a potential hesitation of the downside at the 1.36 price level.
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