Good reversal on the USD/CAD

The USD/CAD continues pulling back as oil continues dropping. There is a negative correlation between the USD/CAD and oil, which is why the pair is rallying during the past few days. The Looney may try to reach the 200 day EMA, blue line, around the 1.3356 zone and maybe complete a pattern known as a breakout and pullback formation. From the 200 day EMA zone, the pair may try to bounce back down and try to reach the latest low that we see on the daily chart around the 1.3162 level. But a breakout above the 200 day EMA, may take the pair to the 55 day EMA, purple line, which could act as resistance. Above the 55 day EMA, the 1.3500 zone may also act as resistance, especially when that zone has acted as a congestion area in the past.