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.

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