Global macro overview for 09/05/2017:
On Monday, Saudi Arabia reconfirmed its commitment to doing "whatever it takes" to keep oil prices steady and increase them in the nearest future. Oil prices have been affected by the persistent oil glut for the past two years, so the OPEC countries agreed to cut the production since the beginning of 2017 for the first half year. The next OPEC meeting is scheduled for the end of May in Vienna. It is almost certain, that OPEC members will discuss the current production cut results. Moreover, it is very possible, that the OPEC members will decide to extend the production cuts not only through 2017 but even into 2018 if necessary.
Let's now take a look at the EUR/CAD technical picture on the H4 timeframe. This pair is highly correlated with the Crude Oil prices (oil up, EUR/CAD down), mostly due to the Canadain Dollar which is a commodity currency. The price reached the level of 1.5155 and since then the market is in a corrective decline. The weekend gap between the levels of 1.4599 - 1.4483 has still not been filled. But if oil price extends gains, then this zone will be tested very quickly. The stochastic oscillator indicates a young stage of an oversold market, so some corrective pullback towards the level of 1.4950 is expected. The next important technical support is seen at the level of 1.4730 and any violation of this level will open the road towards the weekend gap.
