FXstreet.com (London) - Oil has seemingly taken a back seat after being one of the most tumultuous stories of 2009, from hitting highs of nearly 150$ to lows under 40$, finally settling now at around 75$. The oil market is in oversupply at the moment as a lack of sustains demand from a pressured global economy. Oil has typically held a negative correlation with dollar, and indeed Oil shed $1 on Friday and is currently trading at 74.01/06.
CAD, which is highly correlated with oil, with Canada as the worlds seventh largest producer, right now stands marginally up from the open against the Dollar at 1.0511, up 11 pips from the open of 1.0500. The pair recovering from a bearish run early in the Asian session.
See support on the downside at the day low 1.0483 and should Dollar continue to run the last resistance was at 1.0534 (tested and unbreached three times in trade yesterday).