Options market USD/CAD turns most bearish in last two weeks & expecting volatility  in future

WTI crude fell to $70.40 in an early two-day rally on Tuesday. While the 2-day symmetrical triangle limits Black Gold’s recent move, adding 50 HMA to the RSI’s decline and the upper barrier is encouraging for sellers. However, a clear downward break of the triangular support level near $69.20 at the time of issue was necessary for oil sellers to regain control.

After that, a Friday low of $68.30 will attract the market’s attention before lowering the WTI bearish to a September low of around $67 and a July low of around $65.  On the other hand, the rise in commodity prices will be a nutritious nut around $72.00 including the triangular resistance and 50 HMA. Even if the price crosses $72, Friday’s high of $74 could provide an additional filter before oil moves up to $77.60. This implies an upside on the 25th of November.

The options market scenario supports USDCAD sellers ahead of today’s testimony of Canada’s GDP and Federal Reserve Chairman Jerome Powell. The reason for the bearish trend may be related to the cautious optimism of the market on Monday. However, recent doubts about the ability of the vaccine to tame a South African Covid variant known as Omicron support US $ / Canadian dollar buyers. With that in mind, the USD / CAD recorded a 0.30% daytime rise of about 1.2790 at the time of the press.