USD/CAD: Clings near to 1.2600 as USD softness, oil volatility

USD/CAD remains muted at the starting of the fresh trading week.
US Dollar Index slips below 93.00 following FOMC Chairman Powell’s speech.
The Canadian dollar gains momentum as oil picks up after a storm hits US oil ports.

Rekha Chauhan Independent Analyst

After touching the high of 1.2842 in the previous week, USD/CAD is consolidating gains in the early Asian trading hours on Monday. The pair confides in a very close trading band with less than 10-pips movement.

At the time of writing, USD/CAD is trading at 1.2624, up 0.02% for the day.

The US Dollar Index (DXY), which tracks the performance of the greenback against the six major currencies, trades near 92.60 with 0.47% losses.

The movement in the greenback is contributed by the Fed’s Chair Jerome Powel’s speech at the Jackson Hole Economic Symposium. He agreed to start reducing asset purchases this year but he refrained from delivering a timeline.

The gains were capped on the mixed economic data, where US Personal Income and Spending rose in July and core PCE inflation eased for the second straight month.
On the other hand, the Canadian dollar managed to gain on higher crude oil prices.

The barrels of West Texas Intermediate (WTI) trades at $68.98 with 0.36% losses, remained unfazed after Hurricane Ida made landfall on Sunday as a category 4 storm near Port Fourchon.

As for now, traders wait for the Canadian Current Account data, and US Pending Home Sales data to gauge the market sentiment.

USD/CAD additional levels

USD/CAD

Overview
Today last price	1.2624
Today Daily Change	0.0002
Today Daily Change %	0.02
Today daily open	1.2622

Trends
Daily SMA20	1.2597
Daily SMA50	1.2522
Daily SMA100	1.2379
Daily SMA200	1.2544

Levels
Previous Daily High	1.2708
Previous Daily Low	1.2606
Previous Weekly High	1.2834
Previous Weekly Low	1.2579
Previous Monthly High	1.2808
Previous Monthly Low	1.2303
Daily Fibonacci 38.2%	1.2645
Daily Fibonacci 61.8%	1.2669
Daily Pivot Point S1	1.2582
Daily Pivot Point S2	1.2543
Daily Pivot Point S3	1.248
Daily Pivot Point R1	1.2685
Daily Pivot Point R2	1.2748
Daily Pivot Point R3	1.2788

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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