The Canadian dollar was under pressure against all of its major pairs on Monday as crude oil futures expiring in May plunged below Zero for the first time in history.

Crude oil crash hurts the CAD

The Canadian dollar was under pressure against all of its major pairs on Monday as crude oil futures expiring in May plunged below Zero for the first time in history. The Energy sector accounts for approximately 16% of Canada’s benchmark index the S&P/TSX composite index. On Tuesday, U.S. Existing Homes Sales for March are expected to decline to 5.25 million homes on month, from 5.77 million homes in February. In Canada, traders anticipating retail sales to increase 0.2% on month in Feb compared to a gain of 0.4% in Jan. A higher reading than expected is considered positive for both currencies so traders should be prepared for a potentially volatile trading session on Tuesday.

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What are the technical’s indicating?

On a 30 minute chart, the USD/CAD pair is forming a rounding base pattern. Price action broke above mid-day highs late in the trading day as Crude marked new lows on the day. Look for a possible test of the April 16 high at 1.418 as long as the pair remains above 1.4075 support.

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