USD/CAD pares early losses on oil drop, trades around 1.2060


  • USD/CAD is edging higher during the American session.
  • WTI turned south after testing $67, loses nearly 1% below $66.
  • US Dollar Index stays in the negative territory below 90.00.

After dropping to its lowest level in six years at 1.2011 earlier in the day, the USD/CAD pair managed to stage a recovery and was last seen trading flat on the day at 1.2062.

WTI drops below $66 following earlier rally

Crude oil prices built on Monday's gains and the barrel of West Texas Intermediate (WTI) reached its strongest level since early March at $67.00 on Tuesday, helping the commodity-sensitive CAD outperform its rivals. With WTI reversing its direction and losing nearly 1% below $66, the loonie lost interest and allowed USD/CAD to erase its losses.

On the other hand, the greenback remains on the back foot with the US Dollar Index losing 0.4% at 89.83 at the time of press. Nevertheless, the modest rebound witnessed in the benchmark 10-year US Treasury bond yield seems to be helping the USD limit its losses. Additionally, Wall Street's main indexes trade mixed after the opening bell, making it difficult for risk flows to continue to dominate the financial markets.

The only data from the US revealed on Tuesday that Housing Starts declined by 9.5% in April and Building Permits rose by 0.3%. These figures failed to trigger a meaningful market reaction. There won't be any other data releases in the remainder of the day and the pair is likely to continue to react to changes in crude oil prices.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.2057
Today Daily Change -0.0011
Today Daily Change % -0.09
Today daily open 1.2068
 
Trends
Daily SMA20 1.2279
Daily SMA50 1.2439
Daily SMA100 1.2572
Daily SMA200 1.2837
 
Levels
Previous Daily High 1.2137
Previous Daily Low 1.2061
Previous Weekly High 1.2203
Previous Weekly Low 1.2046
Previous Monthly High 1.2654
Previous Monthly Low 1.2266
Daily Fibonacci 38.2% 1.209
Daily Fibonacci 61.8% 1.2108
Daily Pivot Point S1 1.204
Daily Pivot Point S2 1.2013
Daily Pivot Point S3 1.1965
Daily Pivot Point R1 1.2116
Daily Pivot Point R2 1.2164
Daily Pivot Point R3 1.2191

 

 

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