USD/CAD rebounds to 1.2870 area on modest USD strength

USD/CAD erased its daily losses in early American session.
WTI reversed its direction, turned negative on the day near $48.
US Dollar Index posts small daily gains near 90.30.

Eren Sengezer FXStreet

After spending the majority of the day in the negative territory, the USD/CAD pair gained traction in the early American session and advanced to a daily high of 1.2876. As of writing, the pair was virtually unchanged on the day at 1.2867.

WTI retreats to $48

Earlier in the day, the risk-on market atmosphere helped crude oil prices push higher and caused the greenback to lose interest as a safe-haven. The barrel of West Texas Intermediate (WTI) rose to $48.95 and the US Dollar Index slumped below 90.

However, capital flows toward the end of the European session caused the market volatility to heighten modestly amid thin trading conditions. The DXY recovered to 90.30 area and the WTI turned negative on the day near $48, allowing USD/CAD to turn north in the last hour.

The only data from the US showed on Monday that the Dallas Fed Manufacturing Business Index declined to 9.7 in December from 12 in November but was largely ignored by the market participants.

In the meantime, the S&P 500 Index renewed its all-time high after the opening bell on Monday, suggesting that risk flows could make it difficult for the greenback to preserve its strength.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2868
Today Daily Change	0.0002
Today Daily Change %	0.02
Today daily open	1.2866

Trends
Daily SMA20	1.2824
Daily SMA50	1.3002
Daily SMA100	1.3107
Daily SMA200	1.344

Levels
Previous Daily High	1.288
Previous Daily Low	1.2846
Previous Weekly High	1.2958
Previous Weekly Low	1.2786
Previous Monthly High	1.337
Previous Monthly Low	1.2923
Daily Fibonacci 38.2%	1.2867
Daily Fibonacci 61.8%	1.2859
Daily Pivot Point S1	1.2848
Daily Pivot Point S2	1.283
Daily Pivot Point S3	1.2814
Daily Pivot Point R1	1.2882
Daily Pivot Point R2	1.2898
Daily Pivot Point R3	1.2916

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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