USD/CAD climbs above 1.2330 ahead of mid-tier US and Canada data

USD/CAD continues to push higher after breaking above 1.2300.
US Dollar Index clings to daily gains above 91.00.
WTI trades above $65 ahead of weekly API data.

Eren Sengezer FXStreet

The USD/CAD pair registered small daily losses on Monday but managed to reverse its direction ahead of mid-tier data releases on Tuesday. As of writing, the pair was trading at a five-day high of 1.2338, gaining 0.5% on a daily basis.

USD capitalizes on safe-haven flows

The broad-based selling pressure surrounding the greenback and rising crude oil prices weighed on USD/CAD at the start of the week. With the market mood souring, the USD started to gather strength and triggered a rebound in the pair. Reflecting the risk-averse market environment, the S&P 500 Futures are down 0.5% on the day and the US Dollar Index is rising 0.35% at 91.30.

Later in the session, International Merchandise Trade data from Canada will be looked upon for fresh impetus. The US economic docket will feature Goods Trade Balance, ISM-NY Business Conditions Index, IBD/TIPP Economic Optimism Index and Factory Orders data.

Nevertheless, investors are likely to remain focused on the performance of Wall Street's main indexes. A sharp decline in US stocks in the second half of the day could allow the USD to continue to outperform its rivals.

On the other hand, the barrel of West Texas Intermediate (WTI) is rising more than 1% above $65 ahead of the American Petroleum Institute's Weekly Crude Oil Stock report and helping the CAD limit its losses for the time being.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.233
Today Daily Change	0.0049
Today Daily Change %	0.40
Today daily open	1.2281

Trends
Daily SMA20	1.2476
Daily SMA50	1.2535
Daily SMA100	1.2638
Daily SMA200	1.2897

Levels
Previous Daily High	1.2319
Previous Daily Low	1.2267
Previous Weekly High	1.2491
Previous Weekly Low	1.2266
Previous Monthly High	1.2654
Previous Monthly Low	1.2266
Daily Fibonacci 38.2%	1.2287
Daily Fibonacci 61.8%	1.2299
Daily Pivot Point S1	1.2259
Daily Pivot Point S2	1.2237
Daily Pivot Point S3	1.2207
Daily Pivot Point R1	1.2311
Daily Pivot Point R2	1.2341
Daily Pivot Point R3	1.2363

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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