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.

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

 

 

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