USD/CAD up 97-pips to 1.4045
USD/CAD is challenging the earlier high at 1.4040 as oil prices fall to fresh lows. In an unusual divergence, USD/CAD slid yesterday despite a 6% drop in oil prices. There was chatter about leveraged selling in the pair to start the month.
The usual correlation of higher USD/CAD on lower oil is re-establishing itself today. Crude is at fresh lows, down $1.20 to $30.41 per barrel as Iran says it wants to increase exports to 2.3 million barrels per day this fiscal year.
Hopes are also fading (crushed?) for an emergency OPEC meeting on reports that most countries are now against it.
The next target for USD/CAD is yesterday's high of 1.4062. More importantly, the pair appears to be breaking a streak of lower highs. It also may have formed an inverted head & shoulders bottom.
