USD/CAD halts its winning streak on improved oil prices, trades near 1.3340

USD/CAD receives downward pressure as Crude oil prices improve.
WTI price gains ground on the heightened situation in the Red Sea.
US Dollar might have cheered up the improved ISM Manufacturing data.

Akhtar Faruqui FXStreet

USD/CAD snaps its five-day winning streak, trading lower near 1.3340 during the Asian session on Thursday. The Canadian Dollar (CAD) receives upward support on improved Crude oil prices.

West Texas Intermediate (WTI) price trades higher near $73.10 per barrel. Crude oil prices are on the rise, fueled by heightened tensions in the Israel-Gaza conflict. In addition to geopolitical concerns, disruptions at a key oilfield in Libya are playing a role in boosting Crude oil prices. The Iran-backed Houthis targeted a container ship in the southern Red Sea en route to Israel. This incident has escalated fear about maritime security in the Red Sea region.

Canada will see labor market data for December on Friday including Unemployment Rate and Net Change in Employment. On the United States (US) docket, labor market data releases including ADP Employment Change and Initial Jobless Claims will be eyed on Thursday.

The US Dollar Index (DXY) strengthened on risk-off mood, coupled with improved United States (US) Treasury yields. The positive momentum might have found support from the improved ISM Manufacturing PMI report, which showed an increase to 47.4 in December from the previous reading of 46.7, exceeding the market consensus of 47.1. However, JOLTS Job Openings reduced to 8.79M, falling short of the expected figure of 8.85M in November.

The December minutes of the Federal Open Market Committee (FOMC) indicate that participants believe the policy rate has either peaked or is near its highest point in the current tightening cycle. Despite this observation, they highlight that the exact path of the policy will depend on how the economic conditions evolve.

USD/CAD: technical levels to watch

Overview
Today last price	1.3339
Today Daily Change	-0.0019
Today Daily Change %	-0.14
Today daily open	1.3358

Trends
Daily SMA20	1.3368
Daily SMA50	1.3571
Daily SMA100	1.3583
Daily SMA200	1.3484

Levels
Previous Daily High	1.3372
Previous Daily Low	1.3318
Previous Weekly High	1.3267
Previous Weekly Low	1.3178
Previous Monthly High	1.362
Previous Monthly Low	1.3178
Daily Fibonacci 38.2%	1.3351
Daily Fibonacci 61.8%	1.3339
Daily Pivot Point S1	1.3327
Daily Pivot Point S2	1.3295
Daily Pivot Point S3	1.3273
Daily Pivot Point R1	1.3381
Daily Pivot Point R2	1.3403
Daily Pivot Point R3	1.3435

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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