It may be too early to say but it seems like toppy action in oil may lead to a period of consolidation or a deeper correction. Inability of the Canadian dollar to rally on much better than expected labour market report is also telling.

The pair found support at the 38.2% retracement of the 2011 - 2016 rally last week and posted a reversal pattern on Friday. The immediate resistance is 1.28 (2015 support/resistance line) before 1.2870 (50 DMA) and 1.30.

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