BREAKING: USDCAD rebounds sharply amid softening oil prices

USDCAD pair rose sharply during today's session as lower oil prices (which is one of Canada's major exports) pressured Loonie. Crude prices plunged 7% on Monday after Shanghai launched a partial lockdown to curb rising Omicron variant cases, fueling energy demand concerns. Meanwhile, last week the EU was unable to pass the embargo on Russian energy resources amid opposition from Germany and others reliant on energy exports from the country, despite President Biden's pressure.

From a technical point of view, USDCAD pair launched a dynamic upward correction. However, it is worth paying attention to the level of 1.2590, which may act as a short-term resistance. Should a break higher occur, the next two major resistance zones are located at 1.2640 and 1.2690. Source: xStation5, H4 interval.