USD/CAD retreats to 1.4200 area as DXY rally loses steam

  • US Dollar Index pulls away from highs, holds above 100.
  • Retail Sales in Canada rose more than expected in February.
  • US second-month crude oil futures are down more than 35%. 

The USD/CAD pair rose to its highest level in more than two weeks at 1.4266 on Tuesday but struggled to push higher as the greenback lost its strength during the American session. As of writing, the pair was trading at 1.4105, still up 0.4% on a daily basis.

The risk-off atmosphere on Tuesday helped the USD find demand as a safe-haven and helped the US Dollar Index rose to its highest level since April 7 at 100.48. Although the index lost its traction in the second half of the day, it clings to modest daily gains near 100.20 as Wall Street's main indexes trade deep in the negative territory.

Crude oil selloff continues

On the other hand, collapsing crude oil prices make it difficult for the commodity-sensitive loonie to recover its losses. After the front-month WTI contract dropped below $0 for the first time ever on Monday, the second-month crude oil futures continued to fall on Tuesday and were last seen down more than 35% on a daily basis.

Earlier in the day, the data published by Statistics Canada showed that Retail Sales in February increased by 0.3% on a monthly basis to beat the market expectation of 0.2% but was largely ignored by market participants. Meanwhile, the Federal Reserve Bank of Philadelphia's Nonmanufacturing Index slumped to a record low of -96.4 in April.

Technical levels to watch for


Today last price 1.4214
Today Daily Change 0.0065
Today Daily Change % 0.46
Today daily open 1.4149
Daily SMA20 1.408
Daily SMA50 1.379
Daily SMA100 1.3466
Daily SMA200 1.3344
Previous Daily High 1.4152
Previous Daily Low 1.4
Previous Weekly High 1.4182
Previous Weekly Low 1.3856
Previous Monthly High 1.4668
Previous Monthly Low 1.3315
Daily Fibonacci 38.2% 1.4094
Daily Fibonacci 61.8% 1.4058
Daily Pivot Point S1 1.4049
Daily Pivot Point S2 1.3949
Daily Pivot Point S3 1.3898
Daily Pivot Point R1 1.4201
Daily Pivot Point R2 1.4252
Daily Pivot Point R3 1.4352



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