USD/CAD extends daily upside toward 1.3700 on USD strength

USD/CAD pair gained traction after spending the Asian session near 1.3650.
US Dollar Index climbed to its highest level since early June.
WTI fails to hold above $40, loses around 1% on Tuesday.

Eren Sengezer FXStreet

The USD/CAD pair closed the first day of the week modestly lower and spent the Asian session trading sideways around mid-1.3600s on Tuesday. With the greenback starting to gather strength in the European trading hours, the pair gained traction and rose to 1.3700. As of writing, the pair was up 0.17% on the day at 1.3680.

The broad-based USD strength and the uninspiring performance of crude oil prices seem to be helping USD/CAD push higher in the session.

Eyes on Powell testimony, Canada GDP data

The US Dollar Index, which ended the day virtually unchanged near 97.50 on Monday, rose to its highest level since early June and was last seen gaining 0.22% on the day at 97.68. In the second half of the day, FOMC Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will testify before the US House of Representatives Financial Services Committee.

Moreover, the Conference Board's Consumer Confidence Index and the ISM Chicago's PMI will be featured in the US economic docket.

On the other hand, the barrel of West Texas (WTI) Intermediate failed to make a decisive break above $40 on Monday and turned south on Tuesday. At the moment, the WTI is down 1.2% on the day at $39.10, making it difficult for the commodity-related loonie to show resilience against the USD.

Later in the day, Statistics Canada will release the GDP data for April, which is expected to show a 13% contraction in the economic activity.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3687
Today Daily Change	0.0028
Today Daily Change %	0.20
Today daily open	1.3659

Trends
Daily SMA20	1.3548
Daily SMA50	1.3807
Daily SMA100	1.3799
Daily SMA200	1.349

Levels
Previous Daily High	1.3705
Previous Daily Low	1.3647
Previous Weekly High	1.3716
Previous Weekly Low	1.3486
Previous Monthly High	1.4173
Previous Monthly Low	1.3715
Daily Fibonacci 38.2%	1.3669
Daily Fibonacci 61.8%	1.3683
Daily Pivot Point S1	1.3636
Daily Pivot Point S2	1.3613
Daily Pivot Point S3	1.3578
Daily Pivot Point R1	1.3694
Daily Pivot Point R2	1.3728
Daily Pivot Point R3	1.3751

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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