After a brief respite last Friday, the Baker-Hughes Rig Count is once again in the red. For the week, total U.S. oil rigs in operation dropped to 180, down from 181. While a one rig drop may not sound like much, it represents a give back of the July 24 gain. However, the figures are stabilizing in the 180 area, suggesting that a bottom may be forming.

WTI crude oil futures have taken little notice of the news and are nearly flat on the day. WTI’s intrasession trading range has been tight, coming in at 89 ticks. On a side note, the September WTI contract has fallen beneath the $40.00 handle. Today’s close will be important ― a sub-$40.00 settlement may signal a bearish start to August for WTI.

On the forex front, the USD/CAD is in the midst of forming a weekly Doji candlestick. Let’s take a look at the technicals and see where this pair stands after the rig count.

Baker-Hughes Rig Count Slips, USD/CAD Trades Flat

Normally, I’d be excited to see a Doji formation on the weekly timeframe for any pair. However, for the USD/CAD, Dojis are becoming old hat. In fact, we’ve seen two develop in the past six weeks. For the Loonie, it appears that the Doji is a precursor for more sideways action.

Overview: As it has been for more than a month, the 78% Fibonacci Retracement (1.3327) is the key level in this market. If it is taken out to the downside, be on the lookout for a big-time run at 2020’s Low (1.2951).

Remember, Monday marks the first trading day of August. Be ready for institutional investors to become involved as we enter the final stages of the summer season. And, who knows? Perhaps the Baker-Hughes Rig Count will buck all trends and come in positive next Friday.