Crude under heavy pressure
WTI crude has fallen through some levels I highlighted earlier and is now down nearly 5% on the day. That’s led to a sharp, corresponding fall in the Canadian dollar.
USD/CAD appears to be bouncing from the June low.
I think there’s a trade on the long side here if you think the USD rout has gone far enough. Expect a retest of 1.3490/1.3500 in the short term.