Heavy action has dominated the oil and the commodity pairs markets today. Forthcoming U.S. crude oil inventory releases will more than likely act as a catalyst for a directional move. Take a look at the following briefs for key items to look for in the coming hours.

WTI Crude Oil Compression: Day 5

September WTI Crude Oil futures have yet again traded between $48.50 and $50.00 with high intensity. Thus far this session, volumes for the September contract have been huge, near 600,000. We are beginning to see the October contract looming on the horizon, posting volume over 100,000 today.

Daily WTI Crude- September Contract, Compression

It is becoming redundant, but the battleground is clearly between $49.00 and $49.50. As my colleague Arslan mentioned earlier in the session, there are some key levels above current trading that are ripe for shorts.

Remain aware of this afternoon’s API and tomorrow's WTI U.S. crude oil inventory reports. This is a supercharged market. Any fundamental data will bring more volatility to the game.

USD/CAD Update

Earlier today, I put out a long position in the USD/CAD. Here is where it stands:

• Currently, we are trading at the bottom end of value, in the 1.2650’s

• An initial rally tested the 1.2705 level. Depending upon your entry between the area of 1.2650-75, the trade could have yielded a very positive return of 1:1 or 2:1.

• Long term symmetry is still valid, as is the initial stop beneath 1.2628

Bottom Line:  The USD/CAD is showing exactly why it is a commodity pair. Oil is steering the ship right now, with results pending. A glut of action will be coming to the table with the U.S. crude oil inventory releases.

For long-term traders, there has been no confirmation of trend exhaustion or reversal, just a ton of noise. As always, watch the money management and stay the course.