USD/CAD remains stuck in a range, holds steady above mid-1.3000s


  • USD/CAD pair failed to capitalize on Friday’s goodish intraday positive move.
  • A pickup in oil prices underpinned the loonie and capped any meaningful upside.
  • The prevailing bullish sentiment around the USD seemed to help limit the downside.

The USD/CAD pair remained on the defensive through the early European session on Monday, albeit held well within the previous session's broader trading range.

The pair failed to capitalize on Friday's intraday positive move and once again failed near the 1.3070-75 supply zone amid a goodish pickup in crude oil prices, which tend to underpin demand for the commodity-linked currency – the loonie.

Traders preferred to stay on the sidelines

Oil prices climbed over 1% on the first day of a new trading week amid concerns over output and exports from key OPEC producers. Iraq temporarily stopped output at an oil field on Sunday while political unrest has reemerged in Libya.

Supply from the second site in Iraq is at risk as widespread unrest escalates in OPEC’s second-biggest producer. In Libya, National Oil Corp. declared force majeure after Commander Khalifa Haftar blocked exports at ports under his control.

On the other hand, the US dollar remained well supported by expectations that the US economy will continue to expand and reduced odds of any further interest rate cuts by the Fed, which eventually helped limit the downside, at least for now.

Moreover, investors also seemed reluctant to place any aggressive bets on the back of a holiday in the US and might prefer to stay on the sidelines ahead of the key event risk – the latest BoC monetary policy update on Wednesday.

The fundamental set-up points to an extension of the pair's range-bound price action, making it prudent to wait for a sustained move in either direction before traders start positioning for the near-term trajectory.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3059
Today Daily Change -0.0009
Today Daily Change % -0.07
Today daily open 1.3068
 
Trends
Daily SMA20 1.3054
Daily SMA50 1.316
Daily SMA100 1.3186
Daily SMA200 1.324
 
Levels
Previous Daily High 1.3077
Previous Daily Low 1.3033
Previous Weekly High 1.3081
Previous Weekly Low 1.3031
Previous Monthly High 1.3322
Previous Monthly Low 1.2951
Daily Fibonacci 38.2% 1.306
Daily Fibonacci 61.8% 1.305
Daily Pivot Point S1 1.3042
Daily Pivot Point S2 1.3015
Daily Pivot Point S3 1.2998
Daily Pivot Point R1 1.3086
Daily Pivot Point R2 1.3103
Daily Pivot Point R3 1.313

 

 

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