After a slight retracement, Crude (US Oil) is back to this year’s high. CADJPY is approaching a key monthly level which could provide a great trade opportunity in either direction.
Earlier this week Oil was able to attain a new high for the year at 70.50. After today’s positive US CPI data, the price took a deep dive to 68.70. Since then, bulls were able to bring the price back to 70.50. A daily bullish closure above this level will be a catalyst for the next leg up.
As the Dollar continues to consolidate, traders are seeking the Forex minors to provide viable trade setups. CADJPY is a pair of particular interest as the price is currently at a resistance zone near 90.500. A break above will lead to longs and rejection will lead to shorts.
Despite positive inflation data, the Dollar was not able to make a true push higher. The long-term trend is still intact, but volume has died down significantly in the last two months.