USD/CAD drops below 1.3040 ahead of BoC's Business Outlook Survey

WTI posts modest daily losses, trades below $59.
US Dollar Index posts modest gains on Monday.
Coming up: Bank of Canada's Business Outlook Survey.

Eren Sengezer FXStreet

The USD/CAD pair closed the previous week 70 pips higher as the falling crude oil prices weighed on the commodity-sensitive loonie. After fluctuating near the 1.3050 mark for the majority of the day on Monday, the pair edged lower in the last hour and was last seen trading at 1.3038, erasing 0.09% on a daily basis.

Although the barrel of West Texas Intermediate is trading near $58.70 and posting losses for the sixth straight day, the bearish pressure on crude oil seems to have eased following last week's 6% drop.

Eyes on BoC publication

Moreover, investors may be booking their profits ahead of the Bank of Canada's (BoC) Business Outlook Survey, which could provide fresh insights regarding the BoC's policy outlook. Last week, BoC Governor Poloz said that investment could be stronger than they have believed earlier in the year and noted that a combination of healthy employment and wage growth was driving the fundamental demand.

On the other hand, the US Dollar Index is registering small daily gains after suffering small losses on Friday amid the disappointing Nonfarm Payrolls (NFP) report. At the moment, the index is up 0.1% on the day at 97.45.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3038
Today Daily Change	-0.0024
Today Daily Change %	-0.18
Today daily open	1.3062

Trends
Daily SMA20	1.3076
Daily SMA50	1.3173
Daily SMA100	1.3197
Daily SMA200	1.3247

Levels
Previous Daily High	1.3078
Previous Daily Low	1.3029
Previous Weekly High	1.3106
Previous Weekly Low	1.2956
Previous Monthly High	1.3322
Previous Monthly Low	1.2951
Daily Fibonacci 38.2%	1.3048
Daily Fibonacci 61.8%	1.3059
Daily Pivot Point S1	1.3035
Daily Pivot Point S2	1.3008
Daily Pivot Point S3	1.2986
Daily Pivot Point R1	1.3083
Daily Pivot Point R2	1.3104
Daily Pivot Point R3	1.3131

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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