WTI Oil Bounces Back Amid CAD Correlation

The price of WTI oil has recovered from its recent dip, but traders should be aware that it's closely tied to the Canadian Dollar (CAD). When oil prices rise, the CAD tends to strengthen, which in turn makes USD/CAD decline. Two key levels on USD/CAD are worth watching: 200-day M/A at 1.3852 and 200-week M/A at 1.3734.

WTI has formed a small bullish flag on its Daily chart, with an initial upside target around 95.50. However, there will likely be some profit-taking around the current levels of 86.14/86.59 before reaching that target. Today's WTI Pivot Point is 82.03.

For now, the overall technical picture suggests buying oil on dips and selling USD/CAD, either on rallies/pullbacks or following a close below the 200-day M/A.