USD/CAD extends correction, trades around 1.2370

USD/CAD continues to push lower during the American session.
US Dollar Index drops below 92.00 on Monday.
Surging crude oil prices provide a boost to CAD.

Eren Sengezer FXStreet

Following last week's impressive upsurge, the USD/CAD pair started the new week on the back foot and staged a deep correction. As of writing, the pair was trading at 1.2370, losing 0.75% on a daily basis.

USD selloff picks up steam

The broad-based USD strength and rising crude oil prices weigh heavily on USD/CAD on Monday. After posting its largest weekly percentage gain on the back of the hawkish shift seen in the FOMC's policy outlook, the US Dollar Index (DXY) fell sharply on Monday. At the moment, the DXY is losing 0.45% on the day at 91.90.

Meanwhile, St. Louis Fed President James Bullard noted on Monday that the Fed will need to be ready to make adjustments to tapering. Moreover, Dallas Fed President Robert Kaplan reiterated that he is in favour of taking the foot off the accelerator with regards to monetary support sooner rather than later. Despite these comments, the greenback struggled to regather its strength.

On the other hand, renewed concerns over the US and Iran failing to reach a deal on nuclear talks triggered a sharp rally in crude oil prices on Monday. With the barrel of West Texas Intermediate (WTI) rising nearly 3% and reaching its highest level since October 2018 at $73.45, the commodity-related loonie continues to outperform its major rivals.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2366
Today Daily Change	-0.0098
Today Daily Change %	-0.79
Today daily open	1.2464

Trends
Daily SMA20	1.2136
Daily SMA50	1.2237
Daily SMA100	1.2429
Daily SMA200	1.2712

Levels
Previous Daily High	1.2481
Previous Daily Low	1.2339
Previous Weekly High	1.2481
Previous Weekly Low	1.2128
Previous Monthly High	1.2352
Previous Monthly Low	1.2013
Daily Fibonacci 38.2%	1.2427
Daily Fibonacci 61.8%	1.2393
Daily Pivot Point S1	1.2375
Daily Pivot Point S2	1.2286
Daily Pivot Point S3	1.2233
Daily Pivot Point R1	1.2516
Daily Pivot Point R2	1.2569
Daily Pivot Point R3	1.2658

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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