USD/CAD goes into consolidation above 1.3600 after advancing to two-week highs

USD/CAD clings to small daily gains above 1.3600.
Sour market mood weighs on risk-sensitive CAD on Tuesday.
US Dollar Index stays in red near 96.40 ahead of CPI data.

Eren Sengezer FXStreet

Despite the broad-based selling pressure surrounding the greenback on Monday, the USD/CAD pair closed the day in the positive territory above 1.3600. With the commodity-sensitive loonie struggling to find demand amid crude oil's poor performance, the pair stretched higher on Tuesday and touched a fresh two-week high of 1.3647 before going into a consolidation phase. As of writing, the pair was up 0.07% on the day at 1.3618.

Oil selloff hurts CAD

Although the data from China revealed on Tuesday that crude oil imports surged by 34.4% (annually) in June to a record high of 12.99 million barrels per day, crude oil prices struggled to gain traction. The surging number of coronavirus infections globally seems to be forcing investors to remain cautions about the energy demand outlook.

The barrel of West Texas Intermediate (WTI) lost nearly 2.5% on Monday and was last seen flat on the day at $39.58.

Meanwhile, the sour market mood, as reflected by heavy losses witnessed in major European equity indexes, is putting additional weight on the risk-sensitive CAD's shoulders.

On the other hand, the greenback is staying relatively calm against its major rivals, making it difficult for USD/CAD to push higher. Ahead of the Consumer Price ındex (CPI) data from the US, the US Dollar Index is down 0.13% on the day at 96.40.

Later in the day, the API's Weekly Crude Oil Stock report will be watched closely by the market participants as well.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3618
Today Daily Change	0.0009
Today Daily Change %	0.07
Today daily open	1.3609

Trends
Daily SMA20	1.3586
Daily SMA50	1.371
Daily SMA100	1.3831
Daily SMA200	1.3504

Levels
Previous Daily High	1.3612
Previous Daily Low	1.3537
Previous Weekly High	1.3632
Previous Weekly Low	1.3491
Previous Monthly High	1.3802
Previous Monthly Low	1.3316
Daily Fibonacci 38.2%	1.3583
Daily Fibonacci 61.8%	1.3566
Daily Pivot Point S1	1.356
Daily Pivot Point S2	1.351
Daily Pivot Point S3	1.3484
Daily Pivot Point R1	1.3635
Daily Pivot Point R2	1.3662
Daily Pivot Point R3	1.3711

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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