USD/CAD extends consolidation, sits comfortably above 1.34 mark

NY Empire State Manufacturing Index in June comes in worse than expected.
US Dollar Index drops below 97.50 on disappointing data.
Crude oil prices decline on Monday despite heightened geopolitical tensions.

Eren Sengezer FXStreet

The USD/CAD pair is having a difficult time setting its next short-term direction on Monday as the commodity-sensitive loonie fails to capitalize on a weaker greenback amid falling crude oil prices. As of writing, the pair was virtually unchanged on a daily basis at 1.3410.

The Federal Reserve Bank of New York's Empire State Manufacturing Index slumped to -8.6 in June from 17.8 and missed the analysts' estimate of 10 by a wide margin to weigh on the greenback. After spending the majority of the day moving sideways near 97.50, the US Dollar Index turned negative on the day and was last seen down 0.07% on a daily basis at 97.38.

On the other hand, after posting heavy losses last week, crude oil prices started the new week under pressure with the barrel of West Texas Intermediate (WTI) erasing around 1% near the $52 mark and is not allowing the CAD to outperform the USD. Earlier today, Fitch Ratings said that they were expecting the OPEC+ output deal to get extended at least until the end of the year but failed to help crude oil prices rebound.

This week's most significant event will be the FOMC meeting on Wednesday. Manufacturing sales on Tuesday and retail sales on Friday will be featured in the Canadian economic docket.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3409
Today Daily Change	-0.0005
Today Daily Change %	-0.04
Today daily open	1.3414

Trends
Daily SMA20	1.3408
Daily SMA50	1.3413
Daily SMA100	1.335
Daily SMA200	1.3281

Levels
Previous Daily High	1.3424
Previous Daily Low	1.3324
Previous Weekly High	1.3424
Previous Weekly Low	1.3242
Previous Monthly High	1.3566
Previous Monthly Low	1.3357
Daily Fibonacci 38.2%	1.3386
Daily Fibonacci 61.8%	1.3362
Daily Pivot Point S1	1.335
Daily Pivot Point S2	1.3286
Daily Pivot Point S3	1.3249
Daily Pivot Point R1	1.3451
Daily Pivot Point R2	1.3488
Daily Pivot Point R3	1.3552

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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