USD/CAD extends rally to fresh multi-week highs above 1.3300

USD/CAD is gaining more than 100 pips on Monday.
US Dollar Index rose to its highest level since August 12.
WTI is down more than 4% on the day, trading below $39.

Eren Sengezer FXStreet

The USD/CAD pair broke above 1.3300 on Monday and touched its highest level in six weeks at 1.3321. With the market action turning subdues in the last hour, the pair seems to have gone into a consolidation phase and was last seen gaining 0.82% on a daily basis at 1.3312.

DXY surges on safe-haven flows

The broad-based USD strength combined with the heavy crude oil selloff on Monday fueled USD/CAD's rally.

The risk-off market mood amid renewed concerns over the rising number of coronavirus cases impacting the global economic recovery provided a boost to the safe-haven greenback at the start of the week. After Wall Street's main indexes opened the day deep in the negative territory, the US Dollar Index (DXY) advanced to its highest level since August 12th at 93.78. At the moment, the DXY is up 0.73% on the day at 93.67, looking to post its biggest daily percentage gain since early June.

On the other hand, the dismal energy demand outlook and reports suggesting that Libya is getting ready to restart oil production caused crude oil prices to fall sharply. At the moment, the barrel of West Texas Intermediate (WTI) is down 4.7% on the day at $38.94, not allowing the commodity-sensitive loonie to stage a rebound.

There won't be any macroeconomic data releases from Canada on Tuesday and investors will be watching FOMC Chairman Jerome Powell's testimony before the House Financial Services Committee.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3316
Today Daily Change	0.0111
Today Daily Change %	0.84
Today daily open	1.3205

Trends
Daily SMA20	1.3144
Daily SMA50	1.3278
Daily SMA100	1.3499
Daily SMA200	1.352

Levels
Previous Daily High	1.3209
Previous Daily Low	1.3137
Previous Weekly High	1.3247
Previous Weekly Low	1.3128
Previous Monthly High	1.3451
Previous Monthly Low	1.302
Daily Fibonacci 38.2%	1.3182
Daily Fibonacci 61.8%	1.3165
Daily Pivot Point S1	1.3158
Daily Pivot Point S2	1.3112
Daily Pivot Point S3	1.3087
Daily Pivot Point R1	1.323
Daily Pivot Point R2	1.3255
Daily Pivot Point R3	1.3301

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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