USD/CAD - Plummeted Due to Oil's Sharp Upward Movement - 05/16/2017 (GMT)

One of the best performing currency yesterday was the Canadian dollar which extended its gains versus the U.S. dollar. The oil prices and in turn CAD rose following the agreement between Saudi Arabia and Russia, the world's two top oil producers, early on Monday to extend oil output cuts for a further nine months until March, pushing prices up.

The USD/CAD pair plummeted more than 0.7% since Monday’s trading session and created a bearish day hitting the significant psychological support level at 1.3600. If there is a slip below the latter level we could see a downward movement until the 1.3530 barrier and moreover until the 1.3455 price level. On a long-term basis, the commodity currency pair is developing in an uptrend since May 2016. Going to the short-term timeframe, the technical indicators are confirming the bearish scenario. The MACD oscillator is falling and still lies below its trigger line while the stochastic oscillator is moving towards the oversold area. Also, the RSI indicator dropped below the overbought territory and now is holding slightly above the 50 level with strong negative momentum.