USD/CAD Price Analysis: Oil slide weighs over CAD, trendline hurdle is still intact

• Oil price drop weighs over the Canadian dollar and pushes USD/CAD higher. 
• The pair needs to clear key trendline hurdle to weaken bearish pressures. 

The Canadian dollar (CAD) is drawing offers amid the oil price drop and pushing the USD/CAD pair higher at press time. 

The USD/CAD pair has added over 30 pips in the last few minutes to trade at session highs above 1.46. Meanwhile, the front-month June West Texas Intermediate (WTI) oil contract has shed over $2.4 in Asia and is currently trading near $10.90 per barrel; down 14.6% on the day. 

While USD/CAD has spiked, the pair is yet to clear the hurdle of the hourly chart trendline falling from April 21 and April 22 highs. At press time, the trendline resistance is located at 1.4102. That level is currently housing the 100- and 200-hour averages, which are about to produce a bearish crossover. 

The prospects of the pair rising to 1.41 would strengthen once the pair clears the immediate resistance of the 50-hour average located at 1.4068. 

The outlook, as per the daily chart, would turn bullish after a daily close above 1.4265 (April 21 high). That would invalidate the bear flag-like pattern seen on the daily chart and open the doors to 1.45. On the downside, 1.40 is the level to beat for the sellers. 

Hourly chart

Trend: Bearish

Technical levels