The rate has increased significantly in the last days and now is trading in the red again. It remains to see how long the corrective phase will be, it could come only to retest a dynamic support before will increase again. The Brent Oil increased also because the greenback has lost ground versus the Loonie in the last week. The USD/CAD dropped significantly as the USDX has dropped as well, the dollar index rebounded since yesterday and seems motivated to climb even higher in the upcoming hours.

A USDX’s further increase will force the USD/CAD to climb higher again and could send the oil price much lower on the short term.

Brent squeezed a little in the last hours, even if the United States Crude Oil Inventories have come in better than expected. The Crude Levels were reported at 1.6 million barrels in the previous week, much higher versus the 0.5M estimate and after the -2.6M in the former reading period. The US data have come in mixed today, the greenback received support from the Pending Home Sales, which has increased by 3.1%, beating the 2.1% estimate, while the Final GDP rose by 2.9%, more versus the 2.75 estimate and compared to the 2.5% growth in the former reading period. The Final GDP Price Index has come in line with expectations.

The rate dropped after the retest of the 100% Fibonacci level and the lower median line (lml) of the minor ascending pitchfork. Price failed to reach and retest the 50% Fibonacci line (ascending dotted line). The failure to stay in the ascending pitchfork’s body could send the rate towards the outside sliding parallel line (sl) of the minor ascending pitchfork. A further increase will be confirmed only after a valid breakout above the 50% Fibonacci line (ascending dotted line).