USD/CAD edges higher toward 1.2700 as WTI retreats from multi-year highs

USD/CAD closed the previous week with small losses.
WTI touched its highest level since October 2018 near $68.
Rising US Treasury bond yields help USD preserve its strength.

Eren Sengezer FXStreet

Despite the broad-based USD strength, the USD/CAD pair closed the previous week in the negative territory as surging crude oil prices helped the commodity-related CAD stay resilient against the greenback. On Monday, the pair started to edge higher on the back of broad USD strength and was last seen gaining 0.25% on the day at 1.2690.

Oil rally loses stream

Last week, the OPEC+ decided to keep its oil output steady through April and provided a boost to crude oil prices. The barrel of West Texas Intermediate touched its highest level since October 2018 at $67.94 on Monday. However, with WTI losing its bullish momentum and turning flat on the day near $66.20, the USD's market valuation started to impact USD/CAD's movements.

Supported by rising US Treasury bond yields, the US Dollar Index is up 0.3% on the day at 92.25. In the meantime, Wall Street's main indexes remain on track to start the day lower with the S&P 500 Futures falling more than 0.5% ahead of the opening bell. If safe-haven flows take control of financial markets in the second half of the day, the greenback could gather further strength and help USD/CAD climb above 1.2700.

The only data featured in the US economic docket on Monday will be January Wholesale Inventories, which is likely to be ignored by market participants.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2687
Today Daily Change	0.0028
Today Daily Change %	0.22
Today daily open	1.2659

Trends
Daily SMA20	1.2658
Daily SMA50	1.2709
Daily SMA100	1.2855
Daily SMA200	1.3107

Levels
Previous Daily High	1.2737
Previous Daily Low	1.2646
Previous Weekly High	1.274
Previous Weekly Low	1.2575
Previous Monthly High	1.287
Previous Monthly Low	1.2468
Daily Fibonacci 38.2%	1.2681
Daily Fibonacci 61.8%	1.2702
Daily Pivot Point S1	1.2624
Daily Pivot Point S2	1.2589
Daily Pivot Point S3	1.2533
Daily Pivot Point R1	1.2716
Daily Pivot Point R2	1.2772
Daily Pivot Point R3	1.2807

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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