Crude Oil Targets $95-$100 as USDCAD Faces Bearish Pressure
Crude oil prices are expected to continue their recovery mode after completing an ABC pullback around $74.50, leaving scope for further gains up to the $95, $100 region.
The energy market is trending higher, with a strong leg down in the US dollar providing supportive conditions for the Canadian dollar, which has a negative correlation with crude oil prices.
As a result, the USDCAD currency pair is expected to remain bearish, with a possible short setup emerging after a fourth-wave rebound. The current downward wave may pause near the 161.8% extension, but a brief rebound into resistance at 1.3840-1.3911 should be used to establish short positions.
This bullish momentum is credible due to recent energy market statistics showing consistent global crude inventory draws and ongoing supply management from major producing nations, which are expected to give the Canadian dollar a significant boost.