Brent crude oil surged above 70 yesterday partly as USD depreciated. But more importantly, Trump’s decision on Syria in imminent as geopolitical tensions in the Middle East escalates.
Similar picture is seen in WTI crude oil. As seen in the continuation chart, WTI drew strong support from 55 day EMA and rebounded, closing at 65.51 yesterday. 66.66 high is now back in radar. Based on current momentum, this resistance could be taken out very soon.
More importantly, 66.66 is close to long term fibonacci resistance of 50% retracement of 107.68 to 26.05 at 66.87. A strong break of the level will pave the way to 61.8% retracement at 76.50 and above. And that might give USD/CAD another push down towards 1.2 handle.