USD/CAD recovers above 1.34 as crude oil gains traction
|- WTI adds more than 1% on Tuesday.
- US Dollar Index stays calms near 97 handle.
- Coming up: February CPI data from the U.S.
After spending the Asian session in a very narrow range below the 1.34 mark, the USD/CAD pair staged a modest recovery in the last hour and was last seen trading at 1.3410, where it was up 0.15% on a daily basis.
Although investors seem to be staying on the sidelines ahead of the inflation data from the U.S., rising crude oil prices support the commodity-sensitive loonie. As of writing, the barrel of West Texas Intermediate is trading above $57 and gaining more than 1% on the day. Reports of Saudi Arabia planning to intensify its output cuts before the April OPEC meeting are boosting crude oil prices since the start of the week.
On the other hand, the greenback stays under pressure for the third straight trading day on Tuesday with markets staying focused on hopes of British lawmakers accepting PM May's tweaked Brexit deal later today. At the moment, the US Dollar Index is staying flat on the day near the 97 handle. Previewing today's critical CPI data, “Price pressures will benefit higher food and gasoline prices and another solid 0.2% increase in core CPI, leaving the latter unchanged at 2.2% y/y. There is risk for a slight deceleration in shelter, but we expect strength elsewhere, including tariff-related categories, medical care and airfares,” TD Securities analysts said in a recently published report.
Key technical levels
Trends:
Daily SMA20: 1.3268
Daily SMA50: 1.3278
Daily SMA100: 1.3292
Daily SMA200: 1.3179
Levels:
Previous Daily High: 1.344
Previous Daily Low: 1.3392
Previous Weekly High: 1.3469
Previous Weekly Low: 1.3275
Previous Monthly High: 1.3341
Previous Monthly Low: 1.3069
Daily Fibonacci 38.2%: 1.3411
Daily Fibonacci 61.8%: 1.3422
Daily Pivot Point S1: 1.3377
Daily Pivot Point S2: 1.3361
Daily Pivot Point S3: 1.3329
Daily Pivot Point R1: 1.3425
Daily Pivot Point R2: 1.3457
Daily Pivot Point R3: 1.3473
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