The price of oil resumes its uptrend, especially in the West Texas Intermediate measure. WTI reached a new peak of $58, the highest since 2015. On its way, the black gold made a move above the resistance level of $57.58 that capped it early in November.
The recent rise is attributed to Nebraska’s approval of the Keystone XL pipeline, despite environmental concerns. WTI is back to backwardation, for the first time since late 2014, when oil prices collapsed.
Here are the recent moves on the WTI hourly chart:
More: Saudi Arabia rattles oil markets head of OPEC meetings
All the bullish news for the world’s No. 1 commodity does not seem to be reflected in the value of the Canadian dollar. USD/CAD trades around 1.2755, ignoring the gushing oil. This is surprising given the main beneficiary of the pipeline is Canadian oil.
Is this a pre-Thanksgiving snooze? Forex markets have not been that active. Or perhaps worries about the Canadian economy? We are awaiting the publication of Canadian retail sales tomorrow at 13:30 and corporate profits on Friday.
In any case, significant breakouts in the price of oil should have been better-echoed by the C$.
Here are the loonie moves. It’s hard to see any trend.
More: Long USD/CAD trading opportunity on the 4H chart
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