USD/CAD pares daily gains, trades below 1.2300 ahead of PMI data

USD/CAD trades in a relatively tight range on Monday.
US Dollar Index pushes lower toward 91.00 after Friday's rally.
Focus shifts to Manufacturing PMI data from Canada and US.

Eren Sengezer FXStreet

The USD/CAD pair lost nearly 200 pips last week as the upbeat macroeconomic data releases from Canada and rising crude oil prices provided a boost to the CAD. At the start of the week, the pair staged a technical rebound and rose to 1.2320 area before losing its traction. As of writing, the pair was virtually unchanged on the day at 1.2287.

Eyes on US and Canada Manufacturing PMI

The risk-positive market environment is making it difficult for the greenback to attract investors on Monday. The US Dollar Index, which rose more than 0.7% on Friday, is currently losing 0.22% on a daily basis at 91.10.

On the other hand, the barrel of West Texas Intermediate is posting modestly daily gains around $63.50, helping the CAD stay resilient against its American counterpart.

Later in the session, the IHS Markit will release the April Manufacturing PMI figures for both the US and Canada. The ISM Manufacturing PMI will be featured in the US economic docket as well. Finally, FOMC Chairman Jerome Powell will be delivering a speech at 1820 GMT.

In the meantime, the S&P 500 Futures are up 0.5%, suggesting that risk flows are likely to continue to dominate the financial markets in the second half of the day.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2289
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	1.2289

Trends
Daily SMA20	1.2488
Daily SMA50	1.2542
Daily SMA100	1.2643
Daily SMA200	1.2903

Levels
Previous Daily High	1.2323
Previous Daily Low	1.2266
Previous Weekly High	1.2491
Previous Weekly Low	1.2266
Previous Monthly High	1.2654
Previous Monthly Low	1.2266
Daily Fibonacci 38.2%	1.2301
Daily Fibonacci 61.8%	1.2288
Daily Pivot Point S1	1.2262
Daily Pivot Point S2	1.2236
Daily Pivot Point S3	1.2206
Daily Pivot Point R1	1.2319
Daily Pivot Point R2	1.2349
Daily Pivot Point R3	1.2376

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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