The forex has been quiet throughout the trading day, as evidenced by modest ranges across the majors. With only a few hours left in the session, consolidation in the EUR/USD, USD/CHF, and USD/CAD are the lead stories. 

However, things are due to heat up later this week. Wednesday brings U.S. CPI and the FOMC Minutes. Thursday features the much-anticipated U.K. election and a collection of secondary economic metrics. While today’s action is certainly lackluster, don’t get too used to the slow conditions ― things are going to pick up considerably in the coming days. 

For the USD/CAD, participation is due to pick up significantly with the onset of this week’s crude oil inventories cycle. Let’s dig into the daily technicals and see which way this market is heading.

USD/CAD: Technical Outlook

Last Friday was a banner day for USD/CAD bulls. Following the blockbuster Non-Farms Payrolls report, bids hit the markets in mass. Today has been a much different story. Bears are entering the market with conviction in response to January WTI crude oil futures rallying above $59.00.

Here are a few levels to watch as we roll toward the late forex session:

• Resistance(1): Bollinger MP, 1.3250
• Resistance(2): Daily SMA, 1.3269
• Support(1): 62% Macro Wave Retracement, 1.3150

Bottom Line: In the event we see WTI continue to show strength, a long trade from downside support may come into play for the Loonie. Until elected, I will have buy orders in the queue from 1.3154. With an initial stop loss at 1.3124, this trade produces 30 pips on a bullish bounce from intermediate-term support.