By FXEmpire.com
The USD/CAD pair rose on Thursday as the oil markets sold off in a violent manner. The weak Philly Fed numbers out of the US only stoked the fires that were burning after a massive sell off in European equity markets. With oil falling, there is much less demand for the Canadian dollar.
The pair is still in a downtrend technically, and is far from changing that. However, the oil markets seem to be the most important indicator that you can use in order to determine the likely move in this pair. If we can break below the 0.98 on a daily level – this pair continues the fall. If we break above the 1.0000 level – we could get a massive pop in this pair. However, the most important numbers – $80 as support in the CL contract. (Light Sweet Crude) If that gives, this pair will skyrocket. If CL can break $90, this pair falls hard.
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