USD/CAD continues to fluctuate in tight range below 1.3200

USD/CAD is struggling to find direction on Monday.
US Dollar Index dropped below 93.00 as Wall Street rallies.
WTI pared early losses and turned flat above $37 in early American session.

Eren Sengezer FXStreet

The USD/CAD pair rose toward 1.3200 during the European trading hours on falling crude oil prices but reversed its direction and turned flat on the day near 1.3170.

Earlier in the day, the OPEC in its monthly report noted that the world oil demand in 2020 was expected to decline by 9.46 million barrels per day (bpd), compared to 9.06 million bpd in the previous report. Pressured by this report, the barrel of West Texas Intermediate (WTI) slumped to a daily low of $36.80 and weighed on the commodity-related loonie.

However, the upbeat market mood, as reflected by sharp upsurge witnessed in Wall Street's main indexes, helped crude oil stage a rebound. At the moment, the S&P 500 Index is up 1.7% on the day and the WTI is flat near $37.30.

On the other hand, the greenback is struggling to attract investors as a safe-haven in the risk-on market environment. The US Dollar Index is down 0.32% on the day at 92.96.

USD/CAD outlook

OCBC Bank analyst Terence Wu thinks that USD/CAD is likely to trade in the 1.3100-1.3250 range in the near term.

"Soft crude and commodity complex should continue to keep the USD/CAD buoyant for now, although the soggy USD will put a lid on any significant attempts to lift-off," Wu said. “Suspect that there is not much official appreciation for a lower USD/CAD at this point.”

Key technical levels to watch for

USD/CAD

Overview
Today last price	1.3169
Today Daily Change	-0.0009
Today Daily Change %	-0.07
Today daily open	1.3178

Trends
Daily SMA20	1.3146
Daily SMA50	1.3317
Daily SMA100	1.3539
Daily SMA200	1.3521

Levels
Previous Daily High	1.3208
Previous Daily Low	1.3151
Previous Weekly High	1.326
Previous Weekly Low	1.3053
Previous Monthly High	1.3451
Previous Monthly Low	1.302
Daily Fibonacci 38.2%	1.3173
Daily Fibonacci 61.8%	1.3186
Daily Pivot Point S1	1.315
Daily Pivot Point S2	1.3122
Daily Pivot Point S3	1.3094
Daily Pivot Point R1	1.3207
Daily Pivot Point R2	1.3236
Daily Pivot Point R3	1.3264

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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