USD/CAD drops below 1.2400 as crude oil prices gain traction

USD/CAD reversed its direction after rising above 1.2400.
WTI stays in the positive territory near $74.
US Dollar Index continues to fluctuate above 92.00.

Eren Sengezer FXStreet

Following the two-day rally witnessed at the start of the week, the USD/CAD pair preserved its bullish momentum and reached its highest level in more than a week at 1.2424. However, the pair lost its traction ahead of the American session and was last seen losing 0.13% on the day at 1.2385.

WTI edges higher to $74

Rising crude oil prices seems to be helping the commodity-sensitive loonie gather strength against its rivals. Supported by a Reuters report claiming that OPEC+ is expected to discuss an extension to the oil output deal beyond April 2022, the barrel of West Texas Intermediate climbed to $74, rising nearly 1% on the day.

On the other hand, the greenback keeps a firm footing ahead of US data releases and limits USD/CAD's downside for the time being. Currently, the US Dollar Index is posting small daily gains at 92.10.

Later in the session, the Automatic Data Processing (ADP) Research Institute's monthly private-sector employment data will be looked upon for fresh impetus. Moreover, Industrial Product Price and Raw Material Price Index alongside April Gross Domestic Product (GDP) data will be featured in the Canadian economic docket.

Technical levels to watch for

WTI

Overview
Today last price	73.53
Today Daily Change	0.39
Today Daily Change %	0.53
Today daily open	73.14

Trends
Daily SMA20	71.2
Daily SMA50	67.26
Daily SMA100	64.34
Daily SMA200	54.86

Levels
Previous Daily High	73.49
Previous Daily Low	71.69
Previous Weekly High	74.05
Previous Weekly Low	70.69
Previous Monthly High	67.42
Previous Monthly Low	61.53
Daily Fibonacci 38.2%	72.8
Daily Fibonacci 61.8%	72.37
Daily Pivot Point S1	72.06
Daily Pivot Point S2	70.97
Daily Pivot Point S3	70.26
Daily Pivot Point R1	73.86
Daily Pivot Point R2	74.57
Daily Pivot Point R3	75.66

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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