Oil prices surged on Monday amid a host of geopolitical developments. The fighting in Libya escalated which threatens the oil supply. This comes on top of the OPEC oil cuts and the US sanctions on Iran and Venezuela. In addition, the Washington administration designated the Iranian revolutionary guard as a terrorist organization, putting more pressure on the supply side. This impacted oil prices as NYMEX crude oil rose 2.1% and sent oil currencies higher.
Will USDCAD Decline?
After previously rallying to the highs above 1.3416, the USDCAD established resistance after failing to breakout higher. Short term support is now at 1.3136 which will be the downside target for the moment. A break down below this minor support level will see the USDCAD declining further toward the support area of 1.2858.
