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Watch 1.2770 for USD/CAD and 50.00 for WTI Crude Oil

Last week, I was looking at USD/CAD, and expecting some more upside with support around 1.29. However, that support was broken as we can see on the 4H chart chart, and there is some more downside before a strong support area around 1.2770.

USD/CAD 4H Chart 6/20

(click to enlarge)

Retreating from Resistance to Support: The USD/CAD is apparently stuck in a sideways market, with a very short-term downswing at the moment. It found resistance from a falling trendline. Now, it is approaching a key support/resistance pivot around 1.2750-1.2770. I think if price stalls around here, we can look for a rally from this area. 

Risk is Half of Reward: The stop would probably be under 1.27 ie. 1.2680, creating risk of just under 100 pips (Let's say entry is around 1.2760). The target would be 1.29 then 1.30, so an average of 1.2950, which makes it almost 200 pips of reward. This means, the risk is about half the reward. 

Watch Oil: If WTI Crude oil is able to climb back above 50, then the Canadian Dollar might continue to strengthen, and the 1.2750-1.2770 area would be vulnerable. If we see oil retreat instead of clearing 50, it is more likely that the 1.2750-1.2770 area will hold. 

USDWTI Crude Oil 4H Chart 6/20

(click to enlarge)