USD/CAD consolidates daily gains, looks to close above 1.2300


  • Broad-based USD strength helped USD/CAD push higher on Tuesday.
  • Rising crude oil prices limit USD/CAD's upside for the time being.
  • Canada posted a trade deficit of C$1.1 billion in March.

The USD/CAD pair broke above 1.2300 on Tuesday and reached its highest level in nearly a week at 1.2350 before going into a consolidation phase. As of writing, the pair was up 0.26% on the day at 1.2308.

DXY steadies above 91.00

Following Monday's sharp drop, the US Dollar Index (DXY) managed to reverse its direction as the greenback capitalized on safe-haven flows. With Wall Street's main indexes opening deep in the red, the DXY reached its highest level since April 22 at 91.40.

The US Census Bureau reported on Tuesday that Factory Orders increase by 1.1% in March, compared to analysts' estimate of 1.3%.

Meanwhile, the data published by Statistics Canada revealed that Canada registered an international merchandise trade deficit of C$1.1 billion in March. This reading came in worse than the market expectation for a surplus of C$0.7 billion and allowed USD/CAD's bullish momentum to remain intact.

On the other hand, crude oil prices continued to rise amid the improving energy demand outlook. The barrel of West Texas Intermediate (WTI) is currently trading at its highest level since mid-March at $65.70, gaining nearly 2% on the day and helping the commodity-related loonie limit its losses.

There won't be any macroeconomic data releases featured in the Canadian economic docket on Wednesday. Investors will be paying close attention to ADP Employment Change and ISM Services PMI data from the US.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.2306
Today Daily Change 0.0025
Today Daily Change % 0.20
Today daily open 1.2281
 
Trends
Daily SMA20 1.2476
Daily SMA50 1.2535
Daily SMA100 1.2638
Daily SMA200 1.2897
 
Levels
Previous Daily High 1.2319
Previous Daily Low 1.2267
Previous Weekly High 1.2491
Previous Weekly Low 1.2266
Previous Monthly High 1.2654
Previous Monthly Low 1.2266
Daily Fibonacci 38.2% 1.2287
Daily Fibonacci 61.8% 1.2299
Daily Pivot Point S1 1.2259
Daily Pivot Point S2 1.2237
Daily Pivot Point S3 1.2207
Daily Pivot Point R1 1.2311
Daily Pivot Point R2 1.2341
Daily Pivot Point R3 1.2363

 

 

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