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The Canadian dollar was the clear loser from the Doha Disappointment: the oil ministers did not reach any kind of accord, oil plunged and the Canadian dollar dropped across the board with significant weekend gaps.

But oil and forex are never one way street and the pair goes the other way around.

Some analysts said that the lack of an agreement is  actually good for oil prices. Why? That will allow prices to  stabilize in a more natural manner according to supply and demand. This doesn’t seem to make much sense. What makes more sense is profit taking: oil prices slid on Friday, fell on Monday and went back to Friday night’s close – no more and no less, still under the levels seen in the middle of last week.

WTI Crude Oil reached $40 but was unable to hold that ground. It now trades just under this level. Will we see another slide once the dust settles?

USD/CAD levels

The pair is  currently challenging the round 1.28 level, below support at 1.2830 which capped the pair twice in 2015. The next level of support is at 1.2750, which worked as a bottom earlier this month. Below this level, we find  1.2660 and the next line is the very round 1.25, which is 0.80 on CAD/USD.

On the top  side, we have 1.2830 as immediate resistance, followed by 1.2930 and then 1.30, which capped the pair following the Doha Debacle.

Here is the chart

Canadian dollar surging after oil recovers April 18 2016