USD/CAD clings to strong daily gains above 1.3350

USD/CAD looks to close the day at its highest level since early August.
US Dollar Index extends rally, settles above 94.00.
WTI erased a large portion of its daily gains.

Eren Sengezer FXStreet

The USD/CAD pair spent the first half of the day fluctuating in a tight range above 1.3300 but regains its traction during the American trading hours. After climbing to its highest level since August 10th at 1.3376, however, the pair has gone into a consolidation phase and was last seen gaining 0.45% on the day at 1.3361.

USD continues to outperform its rivals

The broad-based USD strength fueled USD/CAD's rally on Wednesday. Supported by upbeat macroeconomic data releases from the US, the US Dollar Index (DXY) advanced to its highest level in nearly two months at 94.31. At the moment, the DXY is up 0.3% on the day at 94.24.

The IHS Markit's flash estimate showed on Wednesday that the Manufacturing PMI in September improved to 53.5 to beat the market expectation of 53.2. Moreover, the Composite PMI arrived at 54.4 to show that the business activity in the private sector continued to expand at a robust pace. Finally, the Housing Price Index rose by 1% in July and surpasses analysts' estimate for an increase of 0.5%.

On the other hand, the weekly published by the US Energy Information Administration revealed that crude oil stocks in the US declined by 1.6 million barrels in the week ending September 18th. With this print coming in higher than the market estimate for a decrease of 2.3 million barrels, crude oil prices lost traction. The barrel of West Texas Intermediate (WTI), which rose to a daily high of $40.70, erased the majority of its gains and is currently trading with small gains at $39.80, making it hard for the loonie to stage a rebound.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3364
Today Daily Change	0.0060
Today Daily Change %	0.45
Today daily open	1.3304

Trends
Daily SMA20	1.3155
Daily SMA50	1.3266
Daily SMA100	1.3484
Daily SMA200	1.3522

Levels
Previous Daily High	1.3346
Previous Daily Low	1.3284
Previous Weekly High	1.3247
Previous Weekly Low	1.3128
Previous Monthly High	1.3451
Previous Monthly Low	1.302
Daily Fibonacci 38.2%	1.3308
Daily Fibonacci 61.8%	1.3322
Daily Pivot Point S1	1.3277
Daily Pivot Point S2	1.325
Daily Pivot Point S3	1.3215
Daily Pivot Point R1	1.3339
Daily Pivot Point R2	1.3373
Daily Pivot Point R3	1.34

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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