It seems unstoppable the Oil rally with both benchmarks, Brent and WTI, trading positively at the time of writing, respectively +0,26% and +0,45% at $49,23bbl e $48,17bbl.
The positive price action, which enables the Oil price to touch 6-months high, is correlated to Venezuela and Nigeria production stops, following economic and politic turmoil. Adding momentum to the movement, Goldman Sachs a few days ago forecasts a bullish price action for the Black Gold in the near-term.
Today is also expected an American Petroleum Institute statement regarding the Oil stockpile for last week, which could have a strong influence on the price action of both benchmarks.
Meanwhile the USD/CAD pair is extending his retracement for the second day in a row after having touched the 5-days high during yesterday’s session. At the time of writing the cross is traded at 1,2863 making a negative performance of 0,26% regaining from the low during mid Asian session at 1,2845.
The Loonie movement, as always happen, is benefitting from the Oil strength and from the news on the Oil market, while the US Dollar is suffering from the correction of the 2-weeks high. Other events that could influence the market sentiment for the two currencies would be today’s US data and the Canadian manufacturing sales.
In this situation the AUD and JPY bullish sentiment is decreasing, while the one for CHF, NZD and even CAD is going up. The increasing in the long positioning on the Canadian Dollar is on track for the 4th consecutive week, and the last time we’ve seen such a positioning has been in February 2013.
Considering the USD/CAD chart it’s pretty easy tu find the next two significant resistances at 1,2898 (50-DMA) and 1,2911. At the opposite side the first support is seen at 1,2830 (13 May low).