USD/CAD inches higher to mid-1.24s as oil falters
|- USD/CAD gains traction in the early NA session.
- WTI extend losses toward $63 on Friday.
- Pair stays little changed on the week.
After encountering a technical support level near the 1.24 mark earlier in the day, the USD/CAD pair reversed course and turned positive on the day as the commodity-sensitive loonie suffered losses amid falling crude oil prices. As of writing, the pair was trading at 1.2450, adding 0.23% on the day. On a weekly basis, USD/CAD is only down around ten pips.
Earlier in the session, Russian economy minister Maxim Oreshkin crossed the news wires saying that oil prices were unlikely to exceed $60 per barrel in the mid-term. The barrel of West Texas Intermediate, which struggled to gain traction after finding a stiff resistance near the $65 mark, extended its corrective slide and was last seen trading at $63.30, where it was losing 1% on the day.
On the other hand, the US Dollar Index is trying to finish the week on a positive note despite rising concerns over a possible government shutdown. The index tested the 90 handle on three separate occasions this week and buyers continued to defend that level. At the moment, the index is up 0.08% on the day at 90.38.If the Senate averts a shutdown by pushing the spending bill through the Congress, the DXY could avoid closing the week in the negative territory by rising above the opening level of 90.77.
Technical levels to consider
1.2405/00 (Jan. 15 low/daily low/psychological level) remains a crucial technical support ahead of 1.2355 (Jan. 5 low) and 1.2255 (Sep. 22 low). On the upside, could be seen at 1.2500 (psychological level), 1.2580 (Jan. 10 high) and 1.2640 (100-DMA).
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