USD/CAD drops below 1.3270, recovers on broad USD strength

US Dollar Index clings to daily gains, looks to close near 98.
Crude oil prices gain traction on Monday amid easing trade concerns.
US Pres. Trump repeats China is sincere about wanting a trade deal.

Eren Sengezer FXStreet

The USD/CAD pair came under renewed bearish pressure in the last hour and dropped to a fresh five-day low of 1.3264. However, with the Greenback clinging to its recovery gains, the pair reversed its direction and erased its losses. As of writing, the pair was trading at 1.3282, adding 0.04% on a daily basis.

Oil rises on easing trade tensions

Earlier in the session, rising crude oil prices provided a boost to the commodity-related CAD. After suffering losses on escalating trade tensions on Friday, the barrel of West Texas Intermediate rose all the way up to $55.23 before losing its traction. At the moment, the WTI is still up 0.55% on the day at $54.15.

While speaking at a joint press conference with French President Macron on the final day of the 45th G7 summit in Biarritz, France, US President Donald Trump said he was confident that China was sincere about wanting to make a trade deal with the United States. "Xi is a great leader who can’t lose 3 million jobs or more in a short period of time, that would break down the Chinese system of trade," Trump noted.

Although Trump's comments lifted crude oil prices higher, it also allowed the Greenback to continue to find demand on the back of rising US Treasury bond yields and helped the pair limit its losses. After erasing nearly 1% last week, the US Dollar Index is now up 0.75% on a daily basis at 98. Meanwhile, the only data from the US showed that new orders for manufactured durable goods orders in July rose 2.1% to beat the market expectation of 1.1% to support the USD's rebound.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3283
Today Daily Change	0.0002
Today Daily Change %	0.02
Today daily open	1.3281

Trends
Daily SMA20	1.3253
Daily SMA50	1.3181
Daily SMA100	1.3297
Daily SMA200	1.3315

Levels
Previous Daily High	1.334
Previous Daily Low	1.3277
Previous Weekly High	1.3346
Previous Weekly Low	1.3251
Previous Monthly High	1.3215
Previous Monthly Low	1.3016
Daily Fibonacci 38.2%	1.3301
Daily Fibonacci 61.8%	1.3316
Daily Pivot Point S1	1.3259
Daily Pivot Point S2	1.3237
Daily Pivot Point S3	1.3196
Daily Pivot Point R1	1.3321
Daily Pivot Point R2	1.3362
Daily Pivot Point R3	1.3384

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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