The last couple sessions the battle around the 1.3070 level in the USDCAD has been fierce. Traders know this is the long term trend line dated from 2012 till present.
The USDCAD rallied above the 1.3500 level following the BOC rate decision, and the pair looks to have broke out.
The USDCAD has a longer term inverted head and shoulder’s pattern in play.
Oil went into free fall in mid-2014, experiencing a relentless bear move which saw oil price drop by over 70%. US shale producers turned out to be the tipping point in terms of the global supply glut. This, combined with a decrease in global demand, proved to be an unstoppable force that lasted for over a year.