Did you know that there is a strong correlation between the Canadian Dollar (CAD) and crude oil? Yes, that's right. Look at the chart below:
The chart on the top panel shows the USD/CAD currency pair, while that on the bottom panel shows WTI Crude oil. Notice that the two tend to move in the opposite direction. Because of the strong correlation between the two, often times, one can be used to interpret how the other could move.
Notice above that USD/CAD has broken above a falling trend line resistance and is now approaching a minor previous resistance (marked using the red horizontal trend line). Given the correlation between the two, if USD/CAD sustains above the red line and starts heading higher, it could suggestive of oil prices heading lower in the short-term.
To learn more about the correlation between the two, click here.
To learn about trend and trend lines, click here.