USD weakens as oil slides to $62.52 on technical resistance

Crude oil futures settled at $62.52 after failing to break through key technical resistance, with implications for commodity-linked currencies. The session saw oil prices reach a high of $63.84 before retreating from the critical swing area between $63.52-$64.14, unable to breach the 38.2% Fibonacci retracement at $64.88 of the 2025 decline from January highs. The rejection at technical resistance suggests weakening momentum in energy markets, which typically pressures the Canadian dollar and supports risk-off sentiment. Key support levels have emerged at the converging 100 and 200-hour moving averages near $61.59-$61.52. The failure to sustain gains above $63.50 indicates potential further downside for oil prices, which could weigh on CAD pairs while benefiting safe-haven currencies. Traders should monitor these technical levels closely as oil price movements often correlate with broader risk sentiment in forex markets.