USD/CAD rebounds on soft oil, risk aversion
The Canadian dollar is under heavy pressure today and is the worst performing major. Oil is a big reason why. Crude fell after a Reuters report that the March 20 OPEC/non-OPEC meetings in Russia have been called off because Iran won't agree to freeze production.
WTI has continued to decline in the past few minutes and is down 98-cents to $37.32.
Yesterday was perfect day for USD/CAD bulls as oil jumped while the Bank of Canada downplayed the potential for further rate cuts. The result was a 200 pip, straight-line drop. The low was retested and held in early North American trading and jumped in the past hour alongside oil.
To absolutely signal a bottom in the pair, you would like to see a close above 1.3430 or 1.3446. That still leaves plenty of breathing room but if the EUR/USD bears return after the European close, it could happen.
Another chart worth a look is the massive reversal in EUR/CAD. It's up 500 pips from the lows.
