USD/CAD climbs to fresh monthly highs above 1.2200

USD/CAD continues to push higher in the second half of the day.
US Dollar Index holds steady slightly above 90.50 on Tuesday.
Rising crude oil prices don't seem to be helping CAD find demand.

Eren Sengezer FXStreet

The USD/CAD moved sideways in a very tight range during the Asian trading hours but managed to gather bullish momentum in the European session and advanced to its highest level in a month at 1.2204. Currently, the pair is up 0.5% on the day at 1.2200.

USD stays resilient against its rivals ahead of FOMC

The renewed USD strength is helping USD/CAD push higher on Tuesday. The US Dollar Index (DXY), which stayed relatively quiet on Monday, regained its traction and rose to the highest level since mid-May at 90.67. Although the DXY seems to have gone into a consolidation phase, it remains on track to register modest daily gains above 90.50.

Earlier in the day, the data published by the US Census Bureau revealed that Retail Sales declined by 1.3% on a monthly basis in May, compared to the market consensus for a decrease of 0.8%. Other data from the US showed the Producer Price Index (PPI) rose to 6.6% on a yearly basis and Industrial Production expanded by 0.8% in May.

Nevertheless, these data don't seem to be having a significant impact on the USD's valuation as investors remain on the sidelines while waiting for the FOMC to announce its policy decisions on Wednesday.

Meanwhile, the barrel of West Texas Intermediate (WTI) is trading at its highest level since October 2018 at $72 but the commodity-related loonie is having a difficult time capitalizing on rising crude oil prices.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.22
Today Daily Change	0.0056
Today Daily Change %	0.46
Today daily open	1.2144

Trends
Daily SMA20	1.2089
Daily SMA50	1.2256
Daily SMA100	1.2447
Daily SMA200	1.273

Levels
Previous Daily High	1.2172
Previous Daily Low	1.2128
Previous Weekly High	1.2178
Previous Weekly Low	1.2057
Previous Monthly High	1.2352
Previous Monthly Low	1.2013
Daily Fibonacci 38.2%	1.2145
Daily Fibonacci 61.8%	1.2155
Daily Pivot Point S1	1.2125
Daily Pivot Point S2	1.2105
Daily Pivot Point S3	1.2081
Daily Pivot Point R1	1.2168
Daily Pivot Point R2	1.2191
Daily Pivot Point R3	1.2211

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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