 Hello, welcome to this week's CMC markets currency snapshot with myself Jasper Lawler today We're going to be looking at the Canadian dollar specifically the USD CAD currency pair And there's been a massive spike in oil prices overnight with strikes in Yemen from a Saudi led coalition of Arab nations And so Canada is a big exporter of oil and typically the Canadian dollar moves in sync with oil prices So we want to see what they outlook for the Canadian dollar is here So as mentioned, there's been a strike in the Middle East And so there are some prospects for supply disruption of specifically Brent crude oil And so that scent price is higher That supply, you know, disruption may not actually play out Yemen's only a very small oil exporter And Egypt does tend to dominate the waters in that area Even though Yemen do have an important port Ardenne right at the beginning of the Red Sea which leads to the Suez Canal So nonetheless, this move in oil prices could be a temporary thing But we do want to see what the outlook could be for the Canadian dollar Which has not seen the kind of volatility that the oil prices have Economic data-wise, we've seen some fairly weak data from the US of late The strong factor there is the labour market with increasing employment Wages are looking a little bit sticky, not really rising as much as expected And retail sales and durable goods orders have been fairly poor in recent months So that is causing a bit of a pullback in the US dollar across multiple currencies We're seeing the Euro rally, the British pound rally And so the Canadian dollar is not quite reacted yet But if we are going to see some higher oil prices as a big oil exporting nation Canada could be the next one to benefit So let's just look at how this chart is setting up here with the USD CAD Because we can actually see there's an important support level Which could give us the clue as to where prices are headed Now this is a daily candlestick chart for the USD CAD And you can see that we've been in this range between 124 and 128 With that 128 formed around the 30th of January this year This 124 has been tested several times And we're right in around that area again now So should this floor give way, what we're probably looking at here Is a double top pattern And so that would then project us and the pattern would offer us an objective for lower prices And should the oil price sustain higher And should the US dollar continue recent weakness Then we could be looking down as far as 113 The peak reached in March 2014 just over a year ago So that's it for this week, CMC markets, currency snapshot We were looking at the US dollar CAD obviously And so this is quite a simple one, we're looking at that 124 support level And we're looking at oil prices And if oil prices sustain that 124 gets broken We could be looking at lower prices in the US dollar CAD exchange rate