USD/CAD posts modest gains near mid-1.2500 as oil rebound loses steam

USD/CAD stays in the positive territory following Tuesday's decline.
WTI is losing more than 1% on Wednesday, trades below $68.
US Dollar Index holds above 93.00 ahead of CPI data.

Eren Sengezer FXStreet

The USD/CAD pair closed in the negative territory on Tuesday as the sharp rebound witnessed in crude oil prices helped the commodity-related CAD outperform its American counterpart. However, the pair didn't have a difficult time limiting its losses on Wednesday and was last seen rising 0.15% on the day at 1.2540.

WTI turns south following Tuesday's recovery

On Tuesday, the risk-positive market environment helped the barrel of West Texas Intermediate (WTI) gains more than 2%. Nevertheless, WTI struggled to preserve its bullish momentum amid a lack of fundamental drivers and reversed its direction on Wednesday. As oıf writing, WTI was down 1.4% on a daily basis at $67.50.

On the other hand, the US Dollar Index (DXY) continues to edge higher after posting gains for the previous three trading days. Currently, the DXY is up 0.12% at 93.18.

Later in the session, the US Bureau of Labor Statistics will publish the July inflation report. Investors expect the Consumer Price Index (CPI) to decline to 5.3% on a yearly basis in July from 5.4%.

Additionally, Atlanta Federal Reserve Bank President Raphael Bostic, who said on Monday that the Fed could start reducing asset purchases between October and December, will be delivering a speech. There won't be any high-tier macroeconomic data releases featured in the Canadian economic docket.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2536
Today Daily Change	0.0014
Today Daily Change %	0.11
Today daily open	1.2522

Trends
Daily SMA20	1.2559
Daily SMA50	1.2402
Daily SMA100	1.2372
Daily SMA200	1.2573

Levels
Previous Daily High	1.2589
Previous Daily Low	1.2519
Previous Weekly High	1.2581
Previous Weekly Low	1.2453
Previous Monthly High	1.2808
Previous Monthly Low	1.2303
Daily Fibonacci 38.2%	1.2546
Daily Fibonacci 61.8%	1.2563
Daily Pivot Point S1	1.2497
Daily Pivot Point S2	1.2473
Daily Pivot Point S3	1.2427
Daily Pivot Point R1	1.2567
Daily Pivot Point R2	1.2613
Daily Pivot Point R3	1.2637

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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