Someone is Lying Here – Oil or the Loonie?

I am not sure if many people know this but Oil and the USDCAD have a very strong negative correlation with one another.

After the OPEC deal I was sure that Oil had formed a secure bottom and was headed to 60+. It ripped through 50 and so far has held above on its way to 60. There is only one issue, USDCAD failed to breakdown. As you can see in the chart below USDCAD has continued to go sideways  and rise steadily while Oil has ripped up off the lows.

If oil is going to go to 63, then USDCAD is going to need to rollover here. Right now, it isn’t.