USD/CAD posts modest gains near mid-1.32s as oil rally loses steam

Saudi Arabia voices committment to restore output after attack on Aramco.
Crude oil prices calm down following Monday's huge gains.
US Dollar Index preserves Monday's recovery gains ahead of the data.

Eren Sengezer FXStreet

Pressured by the sharp upsurge witnessed in crude oil prices and its positive impact on the commodity-sensitive Loonie, the USD/CAD pair edged lower on Monday. However, the broad-based USD strength and a pause in crude oil's rally allowed the pair to turn north today. As of writing, the pair was up 0.2% on the day at 1.3260.

After posting its largest daily percentage gain in nearly 40 years yesterday, the barrel of West Texas Intermediate seems to be staying in a consolidation phase near the $62 handle. Saudi King Salman's comments about the Kingdom staying committed to restoring the oil output in its facilities following the drone attacks seem to be helping ease concerns over protracted supply disruptions.

Attention shifts to data and the Saudi oil minister's presser

Meanwhile, the US Dollar Index, which added 0.8% on Monday to erase last week's losses, stays calm above the 98.50 area on Tuesday, providing additional support to the pair.

Later in the day, Manufacturing Sales data from Canada and Industrial Production and Capacity Utilization figures from the US will be looked upon for fresh impetus. More importantly, Saudi Arabia's oil minister's press conference at 17:15 GMT today will be watched closely by the market participants and a reaction in crude oil prices could affect the pair's movements in the second half of the day.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.326
Today Daily Change	0.0020
Today Daily Change %	0.15
Today daily open	1.324

Trends
Daily SMA20	1.326
Daily SMA50	1.3207
Daily SMA100	1.3275
Daily SMA200	1.3313

Levels
Previous Daily High	1.3272
Previous Daily Low	1.321
Previous Weekly High	1.329
Previous Weekly Low	1.3134
Previous Monthly High	1.3346
Previous Monthly Low	1.3178
Daily Fibonacci 38.2%	1.3248
Daily Fibonacci 61.8%	1.3233
Daily Pivot Point S1	1.321
Daily Pivot Point S2	1.3179
Daily Pivot Point S3	1.3148
Daily Pivot Point R1	1.3271
Daily Pivot Point R2	1.3302
Daily Pivot Point R3	1.3333

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.

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.