Amid falling WTI crude oil prices, the USD/CAD is on the bull. Rates are back above 1.3300 and looking to drive higher ahead of tomorrow’s FOMC Minutes. In the event that they do, a key resistance level may come into play during midweek trade.

Of all the forex majors, the USD/CAD is in for an exceptionally active 24+ hours. With several key events scheduled on the economic calendar, volatility is almost a certainty. If you are trading the Loonie, here are a few events worth watching until 2:00 PM EST Wednesday:

• API Crude Oil Stocks (Tuesday, 4:30 PM EST)
• EIA Crude Oil Stocks (Wednesday, 10:30 AM EST)
• FED Chair Jerome Powell’s Speech (Wednesday, 11:00 AM EST)
• FOMC Minutes (Wednesday, 2:00 PM EST)

The combination of the crude oil inventory cycle and FED activity will very likely drive participation to the USD/CAD. Be sure to implement proper risk management principles as this super-charged news cycle progresses.

USD/CAD Approaches September’s Highs

At press time (1:45 PM EST), the USD/CAD is on the march above 1.3325. This is in the middle of a four-session value area that extends from 1.3300 to 1.3350.

Here are two levels to watch ahead of tomorrow’s FOMC Minutes:

• Resistance(1): September High, 1.3382
• Support(1): Daily SMA, 1.3277

Bottom Line: In the event we continue to see the Greenback rally, a shorting opportunity from just beneath September’s high will come into play. Until elected, I will have sell orders in queue from 1.3371. With an initial stop loss at 1.3406, this trade produces 35 pips when using a standard 1:1 risk vs reward management plan.