USD/CAD & Crude Oil Inventories: Strong resistance in place?
Today at 14:30 GMT will be released the US crude oil inventories, following an unexpected number that weighed on the oil prices during last week. For this time, we could see a decrease from 2.5M to 1.1M, according to the most recent analysts' consensus. Overall higher prices of the oil are putting an interesting scenario across the commodity currencies. For example, USD/CAD is now heading up towards the 1.3100 handle.
Our technical overview for the Loonie at H4 chart is still bullish, as it has been trading above the 500 SMA. However, the pair is trapped inside a very volatile range in terms of price action and we should expect a lower reaction when it reaches the resistance zone of 1.3126 and eventually can re-test the support zone of 1.3025. If the USD/CAD clings to break the 1.3126 level, then a next target to the upside would be the 1.3184 price level.