Crude Oil Surges as USD/CAD Weakens Further

Crude oil is showing signs of continued recovery after completing an ABC pullback at around $74.50, suggesting more upside could be in store for the commodity. In fact, crude oil may have room to rise towards $95 or even the $100 area as it continues its upward trajectory.

Meanwhile, the Canadian dollar (USD/CAD) is expected to weaken further due to the recent strong decline in the US dollar across the board. This bearish trend on USD/CAD could be exacerbated by energy's strength, making the short side a potentially attractive opportunity for traders after a fourth-wave rebound.

Looking at key levels, the 161.8% extension is seen as a potential support area, while resistance on a rebound lies between 1.3840 and 1.3911. This range could be an interesting spot to look for short opportunities if the market remains below the crucial 1.4000 round figure.