USD/CAD Eyes Gains as US SPR Hits 1983 Low, Crude Oil Tests $71

Crude oil prices have recovered to near session highs at $71.09, climbing back above the 100-hour moving average at $70.80 after last week's sharp selloff. The rally comes amid reports that the US Strategic Petroleum Reserve (SPR) has fallen to its lowest level since 1983, raising concerns about diminished supply buffers. This development has direct implications for CAD-correlated pairs, as Canada's economy remains heavily tied to energy exports. From a technical standpoint, the reclaim of the 100-hour moving average is a constructive signal, though traders remain cautious given a similar false breakout on June 22 that quickly reversed to the downside. Near-term resistance sits at $71.09 (session high), with a break above potentially targeting $71.50. Support is anchored at the 100-hour moving average near $70.80, and a failure to hold could expose $70.00. For USD/CAD traders, sustained crude oil strength would favor CAD appreciation and potential downside in the pair, while a rejection at current levels could reinforce recent USD/CAD upside momentum.