USD/CAD climbs to 1.3260 as WTI slumps below $51

Crude oil erases large part of last week's gains.
US Dollar Index stretches higher toward 99.30 on Tuesday.
Coming up: NY Fed's Empire State Manufacturing Index and Manufacturing Sales from Canada.

Eren Sengezer FXStreet

The USD/CAD pair dropped to its lowest level of February at 1.3225 on Monday but reversed its course on Tuesday as falling crude oil prices, once again, started to weigh on the commodity-sensitive CAD. As of writing, the pair was trading at 1.3260, adding 0.2% on a daily basis.

WTI drops below $51

Resurfacing worries over the coronavirus having a negative impact on the energy demand outlook caused crude oil prices to come under renewed selling pressure on Tuesday. Apple said that it may miss the sales and profit targets in the first quarter of 2020 to hurt the risk sentiment on Tuesday. At the moment, the barrel of West Texas Intermediate (WTI) is trading at $50.90, losing 2.65% on the day.

Meanwhile, Russian Energy Minister Alexander Novak is reportedly still in talks with the OPEC+ as the country continues to decide whether it will join the deeper output cuts recommended by the organizations Joint Technical Committee (JTC).

On the other hand, the sour market mood seems to be helping the greenback gather strength against its major rivals. With the US Dollar Index advancing to its highest level in more than four months near 99.30, the pair's bullish momentum remains intact.

In the early trading hours of the American session, Manufacturing Sales from Canada and the NY Fed's Empire State Manufacturing Index will be looked upon for fresh impetus.

Technical levels to consider

WTI

Overview
Today last price	51.32
Today Daily Change	-1.10
Today Daily Change %	-2.10
Today daily open	52.42

Trends
Daily SMA20	52.48
Daily SMA50	57.11
Daily SMA100	56.41
Daily SMA200	56.6

Levels
Previous Daily High	52.51
Previous Daily Low	52.06
Previous Weekly High	52.54
Previous Weekly Low	49.59
Previous Monthly High	65.45
Previous Monthly Low	51.05
Daily Fibonacci 38.2%	52.23
Daily Fibonacci 61.8%	52.34
Daily Pivot Point S1	52.15
Daily Pivot Point S2	51.88
Daily Pivot Point S3	51.7
Daily Pivot Point R1	52.6
Daily Pivot Point R2	52.78
Daily Pivot Point R3	53.05

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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