USD/CAD drops to fresh weekly lows below 1.3900

USD/CAD lost its traction and fell sharply on Tuesday.
Rising crude oil prices help the CAD gather strength against its rivals.
US Dollar Index falls toward 99 ahead of mid-tier data releases.

Eren Sengezer FXStreet

The USD/CAD pair stayed quiet on Monday amid thin trading conditions and closed the day virtually unchanged a little below 1.4000. With the greenback staying under selling pressure and crude oil prices extending last week's rebound, the pair turned south on Tuesday. As of writing, USD/CAD was trading at its lowest level in a week at 1.3872, losing 0.8% on a daily basis.

Easing global energy demand worries continue to boost crude oil prices. After closing the previous week 12.7% higher, the barrel of West Texas Intermediate (WTI) posted modest gains on Monday before resuming its rally on Tuesday. As of writing, the WTI was up 1.05% on a daily basis at $34.05, helping the commodity-sensitive CAD outperform its rivals.

USD remains on back foot

On the other hand, the greenback is struggling to shake off the bearish pressure as the upbeat market mood dampens the demand for safe-haven currencies. At the moment, the S&P 500 futures are up nearly 2% on the day to suggest that Wall Street is likely to open decisively higher on Tuesday.

Ahead of New Home Sales, Chicago Fed National Activity Index, Dallas Fed Manufacturing Index and Conference Board Consumer Confidence Index data from the US, the US Dollar Index is down 0.6% on the day at 99.22.

Toward the end of the day at 2100 GMT, Bank of Canada Governor Stephen Poloz and Deputy Governor Carolyn Wilkins will be testifying before parliament.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3873
Today Daily Change	-0.0111
Today Daily Change %	-0.79
Today daily open	1.3984

Trends
Daily SMA20	1.4008
Daily SMA50	1.4089
Daily SMA100	1.369
Daily SMA200	1.3449

Levels
Previous Daily High	1.4008
Previous Daily Low	1.3969
Previous Weekly High	1.4114
Previous Weekly Low	1.3867
Previous Monthly High	1.4299
Previous Monthly Low	1.385
Daily Fibonacci 38.2%	1.3984
Daily Fibonacci 61.8%	1.3993
Daily Pivot Point S1	1.3966
Daily Pivot Point S2	1.3948
Daily Pivot Point S3	1.3927
Daily Pivot Point R1	1.4005
Daily Pivot Point R2	1.4026
Daily Pivot Point R3	1.4044

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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