USD/CAD drops below 1.2150 as oil continues to push higher

USD/CAD pair is edging lower in the early American session.
US Dollar Index continues to move sideways near 90.50.
Rising crude oil prices help CAD find demand.

Eren Sengezer FXStreet

After rising to a fresh daily high of 1.2171 on Monday, the USD/CAD pair lost its traction during the American trading hours and was last seen losing 0.15% on the day at 1.2135.

WTI extends rally to fresh multi-year highs

Earlier in the day, the USD's resilience allowed USD/CAD to stay in the positive territory. The US Dollar Index, which gained 0.42% last week, continues to move sideways around 90.50 in the absence of significant fundamental drivers.

However, rising crude oil prices provided a boost to the commodity-related CAD in the second half of the day and forced USD/CAD to turn south. Currently, the barrel of West Texas Intermediate (WTI) is trading at its highest level since October 2018 at $71.70, gaining 1.3% on a daily basis.

Meanwhile, the data from Canada showed that Manufacturing Sales in April contracted by 2.1% on a monthly basis. Although this reading came in worse than the market expectation for a decrease of 1%, it doesn't seem to be having a negative impact on the CAD's market valuation.

On Tuesday, the US Census Bureau will release May Retail Sales data. More importantly, the FOMC will announce its policy decisions and publish the updated Summary of Economic Projections on Wednesday.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.213
Today Daily Change	-0.0025
Today Daily Change %	-0.21
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

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.