USD/CAD drops to session lows near 1.3260 as WTI rallies above $55
|- USD/CAD fails to hold above the 1.33 mark.
- Crude oil gains traction in the NA session.
- US Dollar Index recovers majority of its daily losses despite mixed data.
Following a recovery attempt toward the 1.33 mark in the early NA session, the USD/CAD pair reversed its course and fell to a fresh daily low of 1.3264 as the commodity-related loonie gathered strength on the back of rising crude oil prices. However, with the US Dollar Index retracing its daily fall in the last hour, the pair pulled away from lows and was last seen trading at 1.3283, still down 0.18% on a daily basis.
After losing more than 7% on Tuesday, the barrel of West Texas Intermediate added more than 5% today and rose all the way up to $55.83. At the moment, the barrel of WTI is up 4% on the day at $55.35. Today's data from the U.S. showed that crude oil inventories rose 4.9 million barrels in the week ending November 16 and gasoline production edged lower to 10 million barrels per day to provide an extra boost to crude oil.
Today's data from the United States showed that durable good orders fell 4.4% in October and the UoM Consumer Confidence Index in November came in at 97.5 to miss analysts' estimate of 98.3. Finally, existing home sales, which recorded six straight monthly declines, rose 1.4%. At the moment, the DXY is down 0.05% on the day at 96.77.
Technical levels to consider
The pair could face the first resistance at 1.3315 (daily high) ahead of 1.3385 (Jun. 27 high) and 1.3465 (Jun. 12, 2017, high). On the downside, supports are located at 1.3260 (Nov. 14 low), 1.3155 (Nov. 20 low) and 1.3055 (100-DMA).
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