USDCAD was left ambiguous today after bears stepped in at 1.395 and oil held its 29.45 support and closed the day above 30$. It was a pretty slow Monday and chances are it will be a very slow week as Asia will not be active for most of the week and there is no Canadian news either, therefore we could see more USD strength this week.
Theses are the possible scenarios to expect this week.
If USDCAD resistance holds we could see more action to the downside but chances of CAD strength seem to be pretty slim as Oil is in a descending triangle pattern, meaning a possible breakout if support might be in play. Although if Oil decides to head back to the top of the range, CAD strength could be a possibility
If USDCAD breaks resistance and Oil breaks support, it might be the perfect storm for USD strength over the CAD. In the long term if such a scenario happens we would be looking for a possible lower high as we did have a major monthly price rejection candle last month.
The safe play at the moment would be to wait and let the market show us where it wants to go before joining the trend in its direction.
Price is in a very delicate place at the moment.
Possibility of a break out
Possibility of consolidation and range play this week.