Oil strength helping CAD

Oil strength helping CAD 

The OPEC meeting in Doha at the weekend is garnering a lot of attention particularly with Saudi Arabia and Russia agreeing on a production freeze yesterday...according to sources. Oil has rallied around $4 in the last three days and the same strength can be seen in many Oil producer currencies. USDCAD has broken key support1.2827 and closed below down trending wedge; a close back inside in the wedge gives a chance to rotate back higher towards 1.3033 especially as this move seems entirely Oil related. Another close outside confirms the break and an accelerated fall to 1.2652 and .2561 is on the cards. With uncertainty surrounding the Doha meeting Oil is likely to retain a bid, ask yourself would you want to be short Oil into the weekend?

GBPJPY back above February lows 

Sterling has fared reasonably well against Yen on the recent Yen strength and after consolidation inside the last liquidation candle the break has come higher with a close above February lows at 154.73, for comparison, USDJPY is still 180 pips below February lows. We now have the chance to build higher towards 156.14 and main target of 158.4 both a low and 61.8% retrace of the recent fall. There is still the possibility of this bounce becoming a flag, particularly if 38.2% Fib acts as resistance. A flag sets up a potential 12 point further to the downside. 

EURUSD 2 weeks of consolidation broken 

EURUSD has spent the first2 weeks of this month consolidating in a 100 pip range, this morning it has broken and is now breaking first support at 1.1307-00 a continuation through here and below 1.1279 could see a fast move through the vacuum created from Yellen's comments about caution on rate rises down to 1.1218. Any bounce should find resistance at 1.1334-50 and provide a chance to enter shorts for a move lower.