The fall in the crude oil prices helps the pair to bounce back, formed a double bottom near support zone.

At yesterday’s session, US WTI oil prices in November and December ICE Brent oil prices fell 5 percent in the previous close, as investors worried that too many OPEC supply and technical weakness unbearable.

OPEC expects its September record supply of crude oil in 2012, the highest US oil output or the first drop in eight years.

Technical view: We have been recommending bounce back possible between 1.2930 and 1.2900 with sl 1.2880. The pair made a low at 1.2900 probably double bottom bounce to 1.3040 levels.

Intraday trading resistance seems at 1.3050, 1.3080,1.3130

Support finds at 1.2990, 1.2950, 1.2900

Intraday selling opens below 1.2960 accelerates below 1.2900.

Strong momentum available above 1.3080 aims at 1.3130, 1.3150 and 1.3180.

The bulls must close above 1.3190 on a two-day closing basis.

On the downside, a daily close below 1.2860 the bears might extend the journey towards 1.2630 and 1.2580

USDCADpDaily USDCADpH1

In the absence of Canadian data during this week, the direction of the pair depends on the greenback.  Tomorrow’s retail sales, PPI and Thursday’s CPI will deice the further trend.