USD/CAD extends sideways grind below 1.3300

WTI posts small daily losses, trades above $50.
Building Permits in Canada is expected to rebound in December.
USD stays calm ahead of Fed Governor Bowman's speech.

Eren Sengezer FXStreet

The USD/CAD pair registered its highest weekly close since late September at 1.3320 and seems to have lost its bullish momentum at the start of the new week. As of writing, the pair was trading at 1.3296, down 0.12% on the day.

Oil struggles to recover

The heavy selling pressure surrounding crude oil last week and the USD's strong performance on the back of upbeat macroeconomic data releases allowed the pair to push higher.

Worries over the coronavirus outbreak weighing heavily on the global oil demand caused the barrel of West Texas Intermediate (WTI) to post losses for the fifth straight week, hurting the demand for the commodity-sensitive CAD. While investors are waiting for OPEC to announce its decision on deeper output cuts, the WTI is trading in a tight range above the $50 mark.

On the other hand, after gaining nearly 1.4% last week, the US Dollar Index (DXY) is edging lower on Monday to cause the pair to stay in the negative territory. Ahead of Fed Governor Michelle Bowman's speech, the DXY is down 0.09% on the day at 98.61.

The Canadian economic docket will feature Building Permits, which is expected to rebound to +0.6% in December from -2.4% in November.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3299
Today Daily Change	-0.0003
Today Daily Change %	-0.02
Today daily open	1.3302

Trends
Daily SMA20	1.3163
Daily SMA50	1.3141
Daily SMA100	1.318
Daily SMA200	1.3224

Levels
Previous Daily High	1.3321
Previous Daily Low	1.3278
Previous Weekly High	1.3321
Previous Weekly Low	1.323
Previous Monthly High	1.3255
Previous Monthly Low	1.29
Daily Fibonacci 38.2%	1.3305
Daily Fibonacci 61.8%	1.3294
Daily Pivot Point S1	1.328
Daily Pivot Point S2	1.3257
Daily Pivot Point S3	1.3237
Daily Pivot Point R1	1.3323
Daily Pivot Point R2	1.3343
Daily Pivot Point R3	1.3366

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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