Canada is a major producer and exporter of oil and as a matter of fact is the biggest provider of oil to the US. So when the price of oil rises, the CAD has a tendency to also rise. We talked about how weak the European currencies have been this year and this daily chart of the EUR/CAD sums up both situations nicely. This is a strong downtrend which means we should be looking for selling opportunities. This current move up may be the start of a corrective move that may offer that opportunity since the ideal sell is a move up to resistance in a downtrend. However, I would prefer to see the market remain below the 1.44416 buy side high of February 26th before reversing back to the downside. A move up through that level would not indicate a change of trend, but might be a reason to look elsewhere for a trading opportunity.
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