USD/CAD drops to session lows near 1.3280 on oil recovery

WTI looks to settle above $58 with modest gains.
US Dollar Index stays near 98.30 following mixed data.
Coming up on Wednesday: Second estimate of Q3 GDP growth from US.

Eren Sengezer FXStreet

After spending a large portion of the day moving sideways above the 1.3300 mark, the USD/CAD pair lost its traction during the American trading hours and touched a fresh daily low of 1.3251 as rising crude oil prices helped the commodity-sensitive CAD gather strength against its rivals. As of writing, the pair was trading at 1.3285, losing 0.09% on a daily basis.

Crude oil rises on hopes of longer output cuts

Reports suggesting that the Organization of the Petroleum Exporting Countries (OPEC) is unanimously supporting an extension to the oil output reduction agreement ahead of next week's meeting provided a boost to crude oil prices on Tuesday. According to Russian news agency TASS, members are discussing whether the extension will be for three months or six months. The barrel of West Texas Intermediate was last seen trading at $58.20, adding 0.55% on the day.

On the other hand, the US Dollar Index struggled to break out of its tight two-day range and allowed the CAD's market valuation drive the pair's action.

Today's data releases from the US revealed that the trade deficit narrowed to $66.53 billion in October (preliminary) from $70.55 billion in September and Housing Price Index came in at 0.6% to beat the market expectation of 0.2%. On a negative note, the Conference Board's Consumer Confidence Index fell to 125.5 in November and fell short of analysts' estimate of 127. The US Dollar Index struggled to find direction following these numbers and was last virtually unchanged on the day at 98.30.

On Wednesday, investors will be paying close attention to the US Bureau of Economic Analysis' second estimate of the US Gross Domestic Product (GDP) growth data for the third quarter.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3286
Today Daily Change	-0.0017
Today Daily Change %	-0.13
Today daily open	1.3303

Trends
Daily SMA20	1.3215
Daily SMA50	1.3217
Daily SMA100	1.3212
Daily SMA200	1.3277

Levels
Previous Daily High	1.332
Previous Daily Low	1.3284
Previous Weekly High	1.3328
Previous Weekly Low	1.3156
Previous Monthly High	1.3349
Previous Monthly Low	1.3042
Daily Fibonacci 38.2%	1.3306
Daily Fibonacci 61.8%	1.3298
Daily Pivot Point S1	1.3285
Daily Pivot Point S2	1.3267
Daily Pivot Point S3	1.325
Daily Pivot Point R1	1.332
Daily Pivot Point R2	1.3337
Daily Pivot Point R3	1.3355

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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