Who ever says CAD also says Oil and Oil has given us a golden technical price action at a main support. An Inside bar rejection combo also known as a Fakey. This was also combined with the OPEC via the Arab United Energy Minister saying making a comment last week about a possible production cut agreement that would benefit the price of crude. Asia will be coming back from a week long New Year Celebration, and America will be back tomorrow from its day long holiday. We will want to be on the lookout for Wednesday’s USD meeting minutes, and the Crude Oil inventories on Wednesday and Thursday. Cad has its Core CPI announcement on Friday to close off the week.
All in all prices seemed to act accordingly in the Cad pairs as levels were respected and technicals gave us price action signals to work with. Short term I would expect some CAD strength this week, but I would also be weary as this might just be what the market needs for good entries back to its prevailing trend.