The Loonie continues in a rally mode following the crude oil price action, which was bolstered by supply outages in Venezuela and Iran as a result of US sanctions and coordinated OPEC-led supply curbs.
Furthermore, according to Bloomberg, the OPEC is sending a clear message to Wall Street banks and big investors: If Washington passes the legislation that would allow the US government to sue the cartel, the first victim will be shale. This warning is probably helping the price of crude oil to stay strong this week. Suhail Mohammed Al Mazrouei, the United Arab Emirates oil minister and former president of OPEC, had told a group of US financiers that if the so-called NOPEC bill becomes law, the cartel would stop working and therefore every member would raise production to maximum capacity, causing the crash in oil prices.
We should expect the Loonie to trade quietly today, as there will not be many economic data released until tomorrow (housing data set) and Friday (manufacturing sales numbers).
Technically speaking, the USD/CAD pair still on an uptrend; however, it might test the 1.3300 handle given the price strength of crude oil. For now, key supports and resistances are 1.3305, 1.3250 and 1.3350, 1.3365 respectively.