USD/CAD retreats to 1.3030 area as oil rally continues

  • USD/CAD is trading at its lowest level in nearly two weeks.
  • Upbeat market mood continues to weigh on the USD.
  • WTI extends rally into a fifth straight day on Tuesday.

The USD/CAD pair closed the first day of the week in the negative territory and extended its slide on Tuesday pressured by the rising crude oil prices and the broad-based USD weakness. As of writing, the pair, which touched its lowest level in nearly two weeks at 1.3010, was trading at 1.3032, losing 0.35% on a daily basis.

Oil rally persists on upbeat demand outlook

Revived optimism for a steady recovery in global energy demand on the back of positive coronavirus vaccine news continues to provide a boost to crude oil prices. The barrel of West Texas Intermediate gained more than 1% on Monday and is currently trading at its highest level in nearly three months at $43.52, up 1.6% on the day.

On the other hand, the positive risk sentiment remains intact on Tuesday with the major European equity indexes rising more than 1%. Additionally, the S&P 500 Futures are up 0.8%, suggesting that risk flows are likely to dominate the financial markets in the second half of the day.

Meanwhile, the greenback is having a difficult time finding demand amid risk flows and allowing the bearish pressure to remain intact. Ahead of the Conference Board's Consumer Confidence Index data, the US Dollar Index is losing 0.3% on the day at 92.22. There won't be any significant macroeconomic data releases featured in the Canadian economic docket.

Technical levels to watch for


Today last price 1.3033
Today Daily Change -0.0048
Today Daily Change % -0.37
Today daily open 1.3081
Daily SMA20 1.3133
Daily SMA50 1.3194
Daily SMA100 1.3252
Daily SMA200 1.3533
Previous Daily High 1.3112
Previous Daily Low 1.3046
Previous Weekly High 1.3142
Previous Weekly Low 1.3034
Previous Monthly High 1.339
Previous Monthly Low 1.3081
Daily Fibonacci 38.2% 1.3071
Daily Fibonacci 61.8% 1.3087
Daily Pivot Point S1 1.3047
Daily Pivot Point S2 1.3013
Daily Pivot Point S3 1.298
Daily Pivot Point R1 1.3114
Daily Pivot Point R2 1.3147
Daily Pivot Point R3 1.3181



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