USD/CAD loses recovery momentum before reaching 1.3100

US Dollar Index consolidates last week's gains in 97.70/80 region.
Crude oil prices face modest bearish pressure on Monday.
Coming up: Chicago Fed's National Activity Index and goods trade balance data from the US.

Eren Sengezer FXStreet

After closing the third straight week in the negative territory last Friday, the USD/CAD pair gained traction and rose to 1.3080 during the European trading hours on Monday but struggled to push higher as this move is seen as a technical correction of last week's drop rather than a fundamentally-drive advance. As of writing, the pair was virtually unchanged on the day at 1.3057.

Oil rally supported the CAD

Last week, hopes of the OPEC+ opting out for deeper production cuts amid dismal global energy demand outlook and a sharp drop in crude oil stocks in the United States (US) provided a boost to crude oil prices and helped the commodity-related CAD outperform its rivals.

The barrel of West Texas Intermediate (WTI) added 5.5% last week and is now staying in a consolidation phase above the $56 handle.

Meanwhile, ahead of this week's critical Federal Open Market Committee (FOMC) meeting, the US Dollar Index is staying in a tight range near the 97.70/80 region. Later in the day, the Federal Reserve Bank of Chicago's National Activity Index, the Federal Reserve Bank of Dallas' Manufacturing Business Index and the September trade balance data from the US will be looked upon for fresh impetus. The economic calendar won't be featuring any macroeconomic data releases from Canada on Monday.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3058
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	1.3058

Trends
Daily SMA20	1.3207
Daily SMA50	1.324
Daily SMA100	1.3212
Daily SMA200	1.3281

Levels
Previous Daily High	1.3078
Previous Daily Low	1.3052
Previous Weekly High	1.3139
Previous Weekly Low	1.3052
Previous Monthly High	1.3384
Previous Monthly Low	1.3134
Daily Fibonacci 38.2%	1.3062
Daily Fibonacci 61.8%	1.3068
Daily Pivot Point S1	1.3047
Daily Pivot Point S2	1.3036
Daily Pivot Point S3	1.302
Daily Pivot Point R1	1.3074
Daily Pivot Point R2	1.309
Daily Pivot Point R3	1.3101

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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