Crude Oil Rally Fuels USD/CAD Weakness

Crude oil is on the rise, and analysts believe it has room for further strength. The commodity completed an ABC pullback at around $74.50 and appears to be heading towards $95 or even the $100 area.

This bullish trend in crude oil could have a positive impact on the Canadian dollar, potentially leading to more weakness in USDCAD. Looking at the subdivisions of this currency pair, it seems like the bearish impulsive cycle is still ongoing, creating opportunities for short sellers after a fourth-wave rebound.

The key levels to watch are the 161.8% extension and resistance on a rebound at 1.3840-1.3911. These areas could provide attractive opportunities for shorting USDCAD while it trades below the important 1.4000 round figure.