USD/CAD clings to small daily gains around 1.2170


  • USD/CAD continues to trade near monthly high set on Friday.
  • Rising crude oil prices help CAD limit its losses.
  • US Dollar Index extends sideways grind around 90.50.

The USD/CAD pair reached its highest level since mid-May at 1.2178 on Friday and seems to have gone into a consolidation phase on Monday. As of writing, the pair was posting small daily gains at 1.2168.

Investors await FOMC meeting

The broad-based USD strength on the back of recovering US Treasury bond yields allowed USD/CAD to gain traction ahead of the weekend. After gaining 0.42% on a weekly basis, the US Dollar Index (DXY) is staying flat around 90.50 on Monday as investors move to the sidelines ahead of this week's key events.

On Tuesday the US Census Bureau will release the May Retail Sales report. More importantly, the FOMC will announce its monetary policy decision on Wednesday and publish the updated Summary of Economic Projections, which will provide fresh clues regarding the timing of a hawkish shift in the policy. 

On the other hand, crude oil prices continue to push higher, helping the commodity-sensitive loonie stay resilient against its rivals. At the moment, the barrel of West Texas Intermediate (WTI) is trading at its highest level since October 2018 at $71.30, rising 0.7% on a daily basis.

Later in the session, Manufacturing Sales will be featured in the Canadian economic docket. There won't be any high-tier data releases from the US.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.2164
Today Daily Change 0.0009
Today Daily Change % 0.07
Today daily open 1.2155
 
Trends
Daily SMA20 1.2085
Daily SMA50 1.2264
Daily SMA100 1.2453
Daily SMA200 1.2735
 
Levels
Previous Daily High 1.2178
Previous Daily Low 1.208
Previous Weekly High 1.2178
Previous Weekly Low 1.2057
Previous Monthly High 1.2352
Previous Monthly Low 1.2013
Daily Fibonacci 38.2% 1.214
Daily Fibonacci 61.8% 1.2117
Daily Pivot Point S1 1.2098
Daily Pivot Point S2 1.2041
Daily Pivot Point S3 1.2001
Daily Pivot Point R1 1.2195
Daily Pivot Point R2 1.2235
Daily Pivot Point R3 1.2292

 

 

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