Rally In WTI Crude Boosts The Loonie
Shain Vernier • 1 min read
In the wake of a suddenly strong WTI crude oil market, the USD/CAD has broken out to the bear. Rates have fallen consistently during the U.S. session, due in part to the bullish rally above $53.50 in March WTI crude oil futures. The result has been a good showing from the Loonie against the Greenback.
The Loonie On The March: USD/CAD Outlook
Participation has been strong in today’s trade of the USD/CAD. Sellers jumped into this market beneath 1.3300 and haven’t looked back. At press time (1:00 PM EST), rates are pushing session lows at daily downside support.
Here are two levels to watch for the remainder of the session:
- Support(1): Bollinger MP, 1.3244
- Support(2): Daily SMA, 1.3213
Bottom Line: Until elected, I will have buy orders in queue from 1.3216. Using an initial stop at 1.3194, this trade produces 25 pips on a sub-1:1 risk vs reward management plan.
If you are active in the USD/CAD, remember that the crude oil inventories cycle kicks off this afternoon with the API report. Stocks on hand are expected to grow yet again this week, in concert with the seasonal pattern.
Also, tomorrow’s pre-market session features release of U.S. CPI (Jan.). With both oil inventories and CPI hitting the newswires in the next 24 hours, volatility is all but assured in the USD/CAD. It goes without saying, but be sure to have your stops down and leverage in check if you are trading the Loonie.