USD/CAD remains stuck in narrow band below 1.3100

USD/CAD is struggling to find direction on Tuesday.
WTI trades with modest losses as focus shifts to OPEC+ meeting.
US Dollar Index stays under pressure ahead of US data.

Eren Sengezer FXStreet

After closing the first day of the week deep in the negative territory, the USD/CAD pair seems to have gone into a consolidation phase on Tuesday. As of writing, the pair was up 0.1% on the day at 1.3088.

Crude oil loses traction after Monday's rally

Renewed coronavirus vaccine optimism at the start of the week revived hopes for a steady recovery in global energy demand and helped crude oil prices push higher. The barrel of West Texas Intermediate (WTI) gained more than 3% on Monday and provided a boost to the commodity-related loonie.

On Tuesday, the WTI is trading in the negative territory above $41 as investors are waiting for OPEC+ to announce its decision on extended output cuts after the meeting.

On the other hand, the US Dollar Index (DXY) is extending its slide for the fourth straight day on Tuesday, not allowing the pair to turn north. Ahead of Retail Sales and Industrial Production data from the US, the DXY is down 0.3% on the day at 92.35.

Meanwhile, the S&P 500 futures are down 0.6% on the day, suggesting that Wall Street's main indexes could open in the negative territory. A selloff in US stocks could support the USD in the second half of the day and pave the way for a rebound in USD/CAD.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3083
Today Daily Change	-0.0011
Today Daily Change %	-0.08
Today daily open	1.3094

Trends
Daily SMA20	1.315
Daily SMA50	1.3205
Daily SMA100	1.3276
Daily SMA200	1.3537

Levels
Previous Daily High	1.3142
Previous Daily Low	1.3066
Previous Weekly High	1.3173
Previous Weekly Low	1.2928
Previous Monthly High	1.339
Previous Monthly Low	1.3081
Daily Fibonacci 38.2%	1.3095
Daily Fibonacci 61.8%	1.3113
Daily Pivot Point S1	1.3059
Daily Pivot Point S2	1.3025
Daily Pivot Point S3	1.2983
Daily Pivot Point R1	1.3135
Daily Pivot Point R2	1.3176
Daily Pivot Point R3	1.3211

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 holds losses below 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot below 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand and reports that ECB President Lagarde will step down before the end of her term. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.