USD/CAD retreats from session highs, trades around 1.3250 ahead of US CPI data

  • US Dollar Index loses traction in the last hour.
  • WTI clings to small daily gains near $55 handle.
  • Coming up: Consumer Price Index (CPI) data from US.

The USD/CAD pair started the week in a calm manner and closed the day with small gains above the 1.32 handle before stretching higher on Tuesday. After reaching a session high of 1.3265, however, the pair reversed its direction and started to retrace its daily advance. As of writing, the pair was up 0.08% on the day at 1.3250.

Following Monday's sharp drop, the 10-year US Treasury bond has gone into a consolidation phase and allowed the Greenback to stage a technical correction. Nevertheless, in the absence of fundamental drivers, the US Dollar Index, which rose to 97.64 earlier in the session, turned flat on the day at 97.40 to cause the bullish pressure to lose strength.

Eyes on US inflation data

In the early trading hours of the American session, the US Bureau of Labor Statistics will release its inflation report. Markets expect the core Consumer Price Index (CPI) that excludes volatile food and energy prices to remain unchanged at 2.1% on a yearly basis in July. A softer-than-expected CPI reading could weigh on the USD and force the pair to edge lower toward the 1.32 handle.

On the other hand, after posting daily gains for the third straight trading day on Monday, the barrel of West Texas Intermediate is clinging to small gains near $55 ahead of the weekly crude oil stock report published by the American Petroleum Institue and helps the commodity-related Loonie stay resilient against its American counterpart.

Technical levels to watch for


Today last price 1.3253
Today Daily Change 0.0013
Today Daily Change % 0.10
Today daily open 1.324
Daily SMA20 1.3168
Daily SMA50 1.319
Daily SMA100 1.3304
Daily SMA200 1.331
Previous Daily High 1.3251
Previous Daily Low 1.3203
Previous Weekly High 1.3345
Previous Weekly Low 1.3178
Previous Monthly High 1.3215
Previous Monthly Low 1.3016
Daily Fibonacci 38.2% 1.3232
Daily Fibonacci 61.8% 1.3221
Daily Pivot Point S1 1.3212
Daily Pivot Point S2 1.3184
Daily Pivot Point S3 1.3164
Daily Pivot Point R1 1.326
Daily Pivot Point R2 1.3279
Daily Pivot Point R3 1.3307



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