Crude oil is coming down, trying to fill that gap now from early April when Opec decide to cut production to stabilize prices. However, these gaps were expected to be filled at some point so it’s not a surprise that price is coming down. But what’s important is that once they are filled price can reverse. In our case that can cause a rally up into wave b, for a three-wave recovery minimum, before another leg down “c” shows up. At the same time, it’s not a surprise to see USDCAD coming higher, since we know that CRUDE and CAD are positively correlated. USDCAD is seen in impulsive recovery, targeting 1.3555.
![Pinterest](https://pinterest.com/pin/create/button/?url=https://www.actionforex.com/contributors/technical-analysis/496982-crude-coming-down-to-fill-the-gap-supporting-usd-cad-rally-towards-1-3555/&media=https://www.actionforex.com/wp-content/uploads/2023/02/f-oil107.jpg&description=Crude%20oil%20is%20coming%20down,%20trying%20to%20fill%20that%20gap%20now%20from%20early%20April%20when%20Opec%20decide%20to%20cut%20production%20to%20stabilize%20prices.%20However,%20these%20gaps%20were%20expected%20to%20be%20filled%20at%20some%20point%20so%20it's%20not%20a%20surprise%20that%20price%20is%20coming%20down.%20But%20what's%20important%20is%20that%20once%20they%20are%20filled%20price%20can%20reverse.%20In%20our%20case%20that%20can%20cause%20a%20rally%20up%20into%20wave%20b,%20for%20a%20three-wave%20recovery%20minimum,%20before%20another%20leg%20down%20"c"%20shows%20up.%20At%20the%20same%20time,%20it's%20not%20a%20surprise%20to%20see%20USDCAD%20coming%20higher,%20since%20we%20know%20that%20CRUDE%20and%20CAD%20are%20positively%20correlated.%20USDCAD%20is%20seen%20in%20impulsive%20recovery,%20targeting%201.3555.){kind=link}