WTI Oil drops 1%, CAD still resilient

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 31, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Oil prices at both the sides of the Atlantic are down 1%, despite which USD/CAD bears are defending 1.30 level.

    WTI trades below $38.00

    WTI oil is trading below $38.00/barrel as offered tone regained pace in early Europe in response to overnight data released in the US, which showed oil inventories in the US hit record high for seventh consecutive week.

    Across the pond, Brent prices are down 1% as well. Despite weakness in oil, USD/CAD refuses to gather pace and stays below 1.30 handle.

    WTI Technical Levels

    Prices currently trade around $37.75 levels. A breakdown of immediate support at 37.21 (Mar 10 low) would expose support at 36.23 (38.2% of Feb low-Mar high). A violation could see prices test next support at 35.70 (50-DMA). On the higher side, a break above 37.91 (Mar 29 low) would expose 38.64 (23.6% of Feb low-Mar high) followed by 39.84 (previous day’s high).

    USD/CAD Technical Levels

    The pair continues to hover below 1.30 handle. The immediate hurdle is noted at 1.30, above which the pair could test 1.3038 (Nov 3 low). This is followed by a major hurdle at 1.3167 (Mar 11 low). Conversely, a break below 1.2948 (daily low) would expose 1.2912 (previous day’s low) – 1.29 handle, under which losses could be extended to 1.2832 (Oct 15 low).
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