The Oil gap that was created over the weekend let CAD strong today over all major pairs as the gap got filled and just kept going, reaching major support and resistances over the board. USDCAD has a tendency to not necessarily give clear signals of where it wants to go, so in this case we like to get possible clues from other correlated pairs.
USDCAD closed today at support of 1.277 (also the 365 ema) after it bounced right off the daily 21 ema, as it should do in a bearish trend. Will this support hold or will we see a break to 1.268? No clear signal as of yet
CADCHF and CADSGD seems to also be at an area of great resistance, and we are also looking for some type of direction signal before we decide to make a move. Price action signals on theses pairs could give us and edge on trading the USDCAD.
In the end our bias on Oil stays the same and is the main influence of what will happen to the pairs above. We will want to stay alert for the BOC Poloz speech Tuesday and Oil inventories on Wednesday.