FXstreet.com (London) - Oil is trading tightly range bound between 73.70 and 73.90, as OPEC reiterated today that around $75 is a 'good' price, sustainable and economical. The production controllers also stated that should oil drop to around $65 and hold that level production amendments may be likely. Market may take this as indicating limited downside for the commodity.
Despite a continued dollar rally today, oil held firm around $73. Commodities usually have an inverse relationship with Dollar, as a more risky asset class.
Canadian Dollar, colloquially known as the Loonie, is closely tied to Oil. However during this Asian session USD/CAD has drifted, losing 9 pips and currently trading at 1.0689.
James Hyercyzk, of ForexHound.com, gives us insight on the technical levels: Falling gold prices and the weakening stock market pressured the Canadian Dollar throughout the New York trading session. Technically, the March Canadian Dollar broke out to the downside on the move through .9363. The next downside target is a swing bottom at .9094 on the weekly chart