USD/CAD finds resistance near 1.3080 for second straight day

Disagreements over USMCA at Democratic debate weighs on CAD.
WTI struggles to extend recovery, trades around $58 ahead of EIA data.
US Dollar Index stays directionless below 97.50 for third straight day.

Eren Sengezer FXStreet

For the second straight day on Wednesday, the USD/CAD pair struggled to rise above the 1.3080 mark and has gone into a consolidation phase. As of writing, the pair was up 0.08% on the day at 1.3070.

Democrats split over USMCA

During the Democratic debate on Wednesday, candidates Elizabeth Warren and Bernie Sanders voiced their disagreements over President Trump's USMCA trade deal to weigh on the CAD. “We can do much better than a Trump-led trade deal,” Sanders said to raise concerns over democrats voting against the deal that is set to replace the NAFTA.

In the meantime, despite snapping a seven-day losing streak, the barrel of West Texas Intermediate struggled to extend its recovery on Wednesday and was last seen posting small losses near the $58 mark ahead of the US Energy Information Administration's (EIA) weekly crude oil stock report. On Tuesday, the American Petroleum Institue said crude oil inventories in the US increased by 1.1 million barrels in the week ending January 10th.

On the other hand, the US Dollar Index continues to have a difficult time making a decisive move in either direction on Wednesday to allow crude oil's performance and the USMCA headlines to drive the pair's action. Ahead of the Producer Price Index (PPI) data from the US, the US Dollar Index is flat on the day at 97.38.

Markets will also be paying close attention to the details of the phase-one US-China trade deal and a significant reaction in crude oil prices could impact the pair's movements in the second half of the day.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3076
Today Daily Change	0.0014
Today Daily Change %	0.11
Today daily open	1.3062

Trends
Daily SMA20	1.3066
Daily SMA50	1.3169
Daily SMA100	1.3193
Daily SMA200	1.3245

Levels
Previous Daily High	1.308
Previous Daily Low	1.3047
Previous Weekly High	1.3106
Previous Weekly Low	1.2956
Previous Monthly High	1.3322
Previous Monthly Low	1.2951
Daily Fibonacci 38.2%	1.3068
Daily Fibonacci 61.8%	1.306
Daily Pivot Point S1	1.3046
Daily Pivot Point S2	1.3029
Daily Pivot Point S3	1.3012
Daily Pivot Point R1	1.3079
Daily Pivot Point R2	1.3097
Daily Pivot Point R3	1.3113

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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