USD/CAD consolidates Tuesday's gains, trades below 1.2450

USD/CAD is posting modest daily losses ahead of American session.
US Dollar Index stays relatively quiet around 92.50.
Crude oil prices regain traction after Tuesday's sharp decline.

Eren Sengezer FXStreet

The USD/CAD pair gained more than 100 pips on Tuesday and reached its highest level since late April at 1.2495. On Wednesday, the pair seems to have gone into a consolidation phase and was last seen losing 0.2% on the day at 1.2438.

WTI retraces small portion of Tuesday's drop

The sharp decline witnessed in crude oil prices weighed heavily on the commodity-related loonie on Tuesday. The barrel of West Texas Intermediate lost more than 3% amid concerns over OPEC+ producers ramping up output after failing to reach an agreement on the group's output strategy. Nevertheless, WTI managed to stage a rebound and is currently rising more than 1% at $74.65.

On the other hand, the broad-based USD strength provided an additional boost to USD/CAD. The poor performance of Wall Street's main indexes caused a negative shift in market sentiment and helped the greenback to outperform its rivals as a safe haven. Following Tuesday's 0.35% gain, the US Dollar Index is moving sideways around 92.50, allowing CAD's market valuation to impact the pair's action.

Later in the day, the FOMC will release the minutes of its June meeting. The Ivery Purchasing Managers Index data will be featured in the Canadian economic docket as well.

FOMC Minutes June Preview: A view of the Jackson Hole agenda.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2441
Today Daily Change	-0.0020
Today Daily Change %	-0.16
Today daily open	1.2461

Trends
Daily SMA20	1.2304
Daily SMA50	1.2201
Daily SMA100	1.2383
Daily SMA200	1.2657

Levels
Previous Daily High	1.2495
Previous Daily Low	1.2303
Previous Weekly High	1.245
Previous Weekly Low	1.2288
Previous Monthly High	1.2487
Previous Monthly Low	1.2007
Daily Fibonacci 38.2%	1.2421
Daily Fibonacci 61.8%	1.2376
Daily Pivot Point S1	1.2344
Daily Pivot Point S2	1.2228
Daily Pivot Point S3	1.2153
Daily Pivot Point R1	1.2536
Daily Pivot Point R2	1.2611
Daily Pivot Point R3	1.2728

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.